Currently, the cryptocurrency market is experiencing a downtrend amid increased volatility.

Investors were cautiously optimistic, especially with the stock market bleeding in the wake of the saga of the “Evergrade” company, which is one of the giants of the Chinese real estate market and its impact on most financial markets.

Ethereum continues its descending extension from the previous week, as its rise at the $3,679 level was rejected.

Most crypto enthusiasts and analysts have indicated that $3,000 is the ultimate support for Ethereum.

But during the past 24 hours, the price of Ethereum made its way to the $2,650 level, levels not seen since early August 2021.

Read:Bitcoin and Ethereum Price Volatility Decreased…What Does This Mean for Investors?

Where is the price of ethereum headed?

At the time of preparing this article trading Ethereum at $2,851.

The upward pressure decreased significantly after Ethereum price lost support in the red on the daily chart.

However, the 100-day simple moving average (SMA) worked, preventing the bears from doing more damage.

With this support in place, Ethereum is starting to look to recover and get back above the $3,000 level.

It is worth noting that if the recovery fails and return to the $3,000 level, the bears may attempt another takeover, this time targeting the green area near $2,400 (according to the chart below adapted from Source).

The second largest cryptocurrency is likely to fluctuate between red and green areas in the upcoming sessions.

Traders can monitor the movement after the 50-day simple moving average to make sure that the upward trend to $3600 and later to $4000 is correct.

According to the Relative Strength Index (RSI), buyers are gradually regaining control.

The strength of the uptrend will increase as the RSI rises towards the midline and the overbought zone.

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On the downside, holding above the green is especially important for Ethereum because massive sell orders may be triggered as panic selling takes over the investors.

If the price of Ethereum fails to hold, we can expect Ethereum to return to the $2000 levels.

The current status of Ethereum can be summarized as follows:

• Spot price: $2850
• Direction: Slightly upward
• Volatility: low
• Support: the 100-day simple moving average and the $2,400 level
• Resistance: $3,200 and the 50-day simple moving average

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