• Cryptos remain under pressure as risk-off sentiment lingers
• Ethereum is trading below its 50-day SMA
• Momentum indicators are mixed at this stage

Ethereum is recording a green session today, recovering somewhat after six consecutive negative days as the developments in the Middle East dented demand for risky assets. It is hovering below its 50-day simple moving average (SMA) with the recent bullish trend remaining intact and supported by a series of higher highs and higher lows.

In the meantime, the momentum indicators are mostly mixed. The RSI is edging higher but remains pinned well below its midpoint. Interestingly, the stochastic oscillator has moved above its oversold territory (OS), and it is heading higher, towards its moving average (MA). A move above its MA could signal a strengthening bullish pressure in ethereum.

Should the bulls remain calm, they would try to lead ethereum above both the 50-day SMA and 61.8% Fibonacci retracement level of the October 13, 2023 – March 12, 2024 uptrend at 2,511 and 2,507 respectively. They could then try their luck against the 2,667 level, with the key target being the 50% Fibonacci retracement at 2,810, which coincides with the August peak.

On the other hand, the bears are potentially preparing for another downleg towards the recent trough at 2,149, where they could have the change to record a new 2024 low. If successful, the path then looks clear until the 1,734 level with the price action returning to the November 2023 levels.

To conclude, cryptocurrencies remain under pressure, and if the risk sentiment does not improve dramatically, a retest of the September lows cannot be excluded for ethereum.