Despite the bearish sentiment prevailing in the futures market and among traders, Ethereum’s recent price action provides a glimmer of hope, as it hints at the possibility of a short-term reversal to reclaim the 200-day moving average.Ethereum’s price has been in a prolonged downtrend after failing to surpass the $2.1K mark. Sellers successfully pushed the price below the 100-day and 200-day moving averages, around $1.8K, resulting in a multi-month low of $1,531.
Despite the bearish market sentiment, the cryptocurrency has shown bullish signs, particularly a clear bullish divergence between the price and the RSI indicator. This suggests a potential change in the market’s trend. If the price can reclaim its prior significant swing high, traders can expect a period of steady price appreciation, aiming to regain the 200-day moving average.We can observe a consistent downtrend when we focus on the 4-hour timeframe.