Ethereum Analysis: Strong Selloffs Looms as CME Gap Remains Open

Ethereum is facing fresh worries over next price action. This comes after more than 48 hours of uptrend that ensured it reclaimed lost levels.

One such mark is $2,300. Over the last few days, the largest altcoin has been on a downtrend, losing the said mark. It made first attempt at it two days ago. However, it broke it during the previous intraday session.

It started trading at $2,259 and surged to a high of $2,328, breaking the said mark. Although it faced strong rejection, it gained almost 3%.

The current intraday session is a continuation of the previous day’s sentiment. However, it is on a much smaller scale. A closer look at the candle representing the current intraday session shows that the asset made attempt at reclaiming $2,400 as it peaked at $2,360.

Due to the continuous flow of buyers into the coin, indicators are currently bullish. For example, the Moving Average Convergence Divergence is currently printing a positive signal.

A closer look at the metric shows that the 12-day EMA is currently on an uptrend. With the 26-day EMA continuing it’s downtrend, a bullish convergence is imminent. This will signal the continuation of the uptrend.

The Relative Strength Index also points to the asset seeing a steady flow of buyers. If this continues, many will expect ETH to retest key levels. While these readings send clear signals of an impending massive, it is important to pay close attention to other indicators like the CME gap.

Ethereum has a CME Gap at $1,500

While many anticipate more price increases, the CME gap paints a different picture. Over the past year, ETH created and filled these gaps but left one.

This space dates back to May 10 when the Futures market closed at $1,417. It ended the next Monday when the market opened at $1,557. As with the trend on such gaps, the cryptocurrency will drop to this level to fill it.

Aside from this, there is another gap the was formed in November. Although small, it stretched from $1,833 to $1,873. While the other space looks uncertain, the Apex altcoin will soon face a downtrend that’ll fill this hole. When will it happen?

Key levels to Watch

Vital Support: $2,150, $1,900, $1,750

Vital Resistance: $2,500, $2,700

With a bearish outlook and flipping the first CME gap at $1,800, it is safe to say all the highlighted supports will break. Nonetheless, the $2,150 barrier has held out against several attempts for almost two months now. It is safe to conclude that ETH will exchange for an extended period around the mark before breaking it.

Once it fails, the largest altcoin will drop as low as $1,900. The mark is another strong one. However, ether did not trade around it for a long time before surging. Nonetheless, it may break. Once this happens, the CME gap at $1,800 will be filled. The last mark to bank on is the $1,700. Will ethereum fill the $1,400 gap? Sure. When this happens is only a question time will answer.

On the other hand, a surge from the current price will send the apex alt to test critical resistance. One such is the $2,500 resistance. Afterward, it may retest $2,700.