Ethereum (ETH) Price Faces Downside Risk on Daily Chart; Will Price Drop Below $2800?

Ethereum’s (ETH) price fell for the second consecutive day on Thursday. ETH’s price manages to sustain the 50-day Simple Moving Average (SMA) at $3,060. Investors need conviction to take a jump toward $3,200 just to make the recent uptrend intact.

Ethereum (ETH) price trades modestly lower on Thursday.
ETH takes crucial support near the 50-day SMA.
Price shoots up 48% from January’s lows of $2,159.0.

In the recent update, Twitter, the social media platform allowed a slew of fresh payment services to the existing tipping options, which now include Ether (ETH) apart from Bitcoin payment.

Furthermore, Morgan Stanley Wealth Management in its note reported that Ether, the native coin of the Ethereum blockchain posses greater concentration risk as most of the currency is held by a small number of accounts. High transaction fees and volatility are another problem area of the blockchain.

On the daily chart, Ethereum’s (ETH) price has rallied nearly 50% from January’s lows and formed the swing highs at $3,284.75 on February 10. However, investors lose their patience and retrace lower as a healthy retracement near $2,800. This also coincides with the breaking of the crucial 50-day Simple Moving Average (SMA).

Source: Trading View

Now, if the selling pressure becomes intensified instead of a simple retracement, the price could drop toward the $2,500 level.

Next, ETH will take out the lows of $2,150 levels last seen in July.

On the flip side, if the price is able to sustain the session’s low then it could jump back to the recent highs of $3,200.

A next upside could be found at 12% upside at the 200-day SMA at $3,600.

Technical Indicators:

RSI: The Daily Relative Strength Index (RSI) reads at 51 below the average line indicating the concerns for the bulls.

MACD: The Moving Average Convergence Divergence (MACD) holds above the midline with a neutral stance.