Ethereum breaks below $2.8K: Is this a good time to buy?

Ethereum price analysis for Feb 21, 2022, confirms that the token is following a bearish trajectory, and there is a huge chance that the world’s second-biggest cryptocurrency might fall further. We saw ETH dip below the important support region of $2.9K-$3K in our ETH price analysis for Feb 18, 2022 and since then, this region has turned into a major resistance zone. 

The data from CoinMarketCap shows that the trading volume of the token surged 31.45% in the last 24 hours followed by a 0.13% drop in the market cap. Moreover, the Market Dominance of the token stands at 18.31% while the Volume / Market Cap Ratio stands at a value of 0.03878. 

The daily candle for the token opened at a price of $2621 and reached a daily high of $2733. Furthermore, the daily low of the token stands at $2605. It is to be noted that the price of 1 ETH at the time of writing stands at $2728.

Ethereum price analysis for Feb 21 on the daily chart

Ethereum price analysis for Feb 21, 2022, can be concluded based on the following 3 major indicators as seen in the chart below.

Source: TradingView

The RSI indicator witnessed a bearish divergence for the world’s second-biggest cryptocurrency as the MACD line (blue) dropped below the signal line (orange) which confirms a bearish divergence. 

The RSI indicator shows a value of 43.16 and there is a short spike in the gradient of the line which means that higher prices might follow today. 

The price action has dropped to the lower end of the Bollinger Bands which means that if the selling pressure increases, the prices might break out from the lower end, leading to lower prices. 

Conclusion

Ethereum price analysis for Feb 21, 2022, confirms that the token remains on a bearish trajectory and there is a huge chance that the token will fall below $2.5K in the coming days. Although higher prices might follow today, overall, indicators remain bearish.