Ethereum Pulls Back As Global Sell-Off Continues

Ethereum Declines While Bitcoin Tries To Settle Below The Support At $56,000

Ethereum did not manage to settle above the resistance at $4,535 and pulled back towards the support at $4,380 as global markets found themselves under pressure amid worries about the spread of Omicron.

Moderna CEO has recently said that vaccines would be less effective against the new variant. Traders have immediately reacted to these words and moved out of riskier assets while buying U.S. government bonds.

In recent days, crypto markets have been sensitive to global risk appetite, and it looks that this trend remains intact. Bitcoin gained downside momentum and made an attempt to settle below the support level at $56,000. In case Bitcoin manages to settle below this level, it will move back towards the support at $53,600 which will be bearish for crypto markets.

Meanwhile, Solana is trying to settle back below the 50 EMA at $201.65 while XRP has pulled back below $1.00. Dogecoin has recently made an attempt to settle above the 20 EMA at $0.2275 but lost momentum and pulled back towards the support level at $0.2150. Shiba Inu does not follow the general market trend today and continues to move higher as received listing on Kraken.

Technical Analysis

Ethereum has recently made another attempt to settle above the resistance at $4,535 but failed to develop sufficient upside momentum. This resistance level has already been tested several times and proved its strength.

RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge. If Ethereum gets above $4,535, it will move towards the resistance level at $4,650. A successful test of this level will open the way to the test of the resistance at $4,770.

On the support side, a move below the support at $4,380 will push Ethereum towards the 20 EMA which is located near $4,300. In case Ethereum declines below the 20 EMA, it will head towards the support at $4,200. A successful test of this support level will push Ethereum towards the support at $4,100.

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