Ethereum (ETH) Retreats amid Market Sell-Off, Exploring $4K Levels

Ethereum surrenders to bears as the altcoin tests the support area beneath the 20 Exponential Moving Average. ETH faces a price plunge as market players avoid riskier assets.

Ethereum (ETH) failed to stabilize beyond the $4,535 resistance level and retraced under the 20 Exponential Moving Average at $4,310. That comes as the overall crypto market experiences massive pressure.

Updates on a new coronavirus variant in South Africa catalyzed panic among market players. Traders moved to safe assets as they offload riskier ones. With that, cryptocurrencies suffered pressure as battles within the red area at the moment.

Meanwhile, Bitcoin could not settle beyond the 50 Exponential Moving Average of $58,700 and retrace under $57,000. For now, BTC has its immediate support level at $56,000. If the leading altcoin loses this area, it will witness additional downward strength and explore the $53,600-mark. Such a move will translate to a bearish outlook for Ethereum.

Meanwhile, other digital coins trade lower today. Shiba Inu had its momentum fading and was unsuccessful in its attempt to stabilize past the 20-EMA of $0.00004650 and attempts to settle beneath $0.000040. Recently, Dogecoin hovers beneath the vital support level of $0.2150. Solana test the 50 Exponential Moving Average at $202 as XRP tries to secure place under the $1-mark.

Technical Analysis

For now, Ethereum trades beneath the support area at 20 Exponential Moving Average at $4,310. Success here will have the leading alternative coin touching the $4,200-level. ETH has to surge past the resistance at $4,535 to test its record high level. Settling beyond this area will have the alt hitting its following resistance at $4,655. A move past this area will see Ethereum rising towards $4,770.

Ethereum Explores $4K Support

ETH-USD seemed to encounter resistance within a downward trend that prevented upward actions since the token printed its ATH at $4,867.8 on November 10. However, dip-buying has kept the pair above $4,000. The area served as a psychological level over the previous last week. That was after the altcoin broke past it on October 20. Before that, the $4K acted as resistance.

Stay tuned for what the crypto market will have in the upcoming sessions.