Ethereum Analysis: ETH Could Lose $2,400 as Fresh Selloffs Looms

Ethereum has been mostly flat over the last 24 hours. This comes as it failed to register any significant change in value during this period. Nonetheless, during the previous intraday session, it veered closer to a critical support.

It opened trading at $2,469 but had a notable price decline. As a result, it dropped to a low of $2,413 before a rebound. Following the rebound, the asset saw a small recovery that ensured it peaked at $2,502 and closed a little higher than it started the day.

However, the lows are raising concerns as they seem to go lower during a small downtrend. For example, at the start of the most recent decrease, ETH maintained trading above $2,470. However, at the time, it edged close to flip the $2,400. What are the signs?

Ethereum Could Retest $2,200

The Moving Average Convergence Divergence is one of the brightest indicators at this time. A closer look suggests that it is printing a bearish signal. The 12-day EMA intercepted the 26-day in what is described as a bearish divergence. This could be the start of more rounds of price decreases.

Aside from this, the Relative Strength Index is also on a downtrend. This further highlights the growing increase in selling volume. It is also worth noting that the decline is rather gradual.

With this in mind, it is only a matter of time before the $2,400 support breaks. If that happens, the largest alt may drop as low as $2,200 which is the next critical support. As in previous times, the largest alt may trade around the said mark for an extended period before breakout.

On the other hand, if trading conditions improve, ETH may attempt $2,600.

In other news, ETC is seeing huge volatility. However, most of it comes from when the asset experiences a small decline. One such took place on Thursday. As a result, it lost almost 7% during that day.