Ethereum is trading in a narrow range from $ 1,300 to $ 1,400. If the $ 1300 support breaks down, we can expect Ethereum to drop.
Ethereum recently reached price levels above $ 1,400. The bullish leg tested the resistance at $ 1,450, but it hit a massive seller congestion. Ethereum's boom occurred after Bitcoin surged to $ 38,000 by Elon Musk on Friday. Musk claimed that he bought BTC by changing his biography on Twitter to Bitcoin.
Meanwhile, Ethereum has been withdrawn to $ 1,300 as it cannot hold above $ 1,400. On the upside, the 50 Simple Moving Average is the cap price move. It looks like the selling pressure is intensifying, thus jeopardizing emergency support at $ 1,300.
The above support areas should be defended at all costs. The Moving Average Convergence Divergence adds weight to the pessimistic perspective. This indicator tracks the asset's trend and calculates its momentum. The MACD can be used as a sell or buy signal. It can be sold when the MACD line crosses above the signal line, and when the MACD line crosses below the signal line.
For now, the path of lowest resistance is downward relative to the MACD. Keep in mind that closing below $ 1,300 daily can trigger large sell orders. If enough selling pressure is created, Ethereum support could drop to test at $ 1,200.
It also shows that if 100 SMA support stays intact, Ethereum can avoid the failure completely. While Ethereum is heading for $ 1,400 and $ 1,500, closing the day above 50 SAM will require more buy orders.
