Ethereum price fell victim to increased selling activities over the weekend session. Last week’s key support at $135 gave in to the selling pressure, allowing the bears into the driver seat as ETH/USD plunged under $130. The price approached $120 support area but found balance at $124. At the time of writing, a 2% gain on Monday has pulled Ether to $127 (market value) as buyers continue to through jabs at the $130 seller congestion zone.
The 4-hour chart shows Ethereum trading under a short term ascending trendline following the above breakdown. Moreover, the price is beneath the 50 SMA and the 100 SMA. An effort is being made by the bulls to recover the lost ground above the trendline in a bid to reclaim support above $130.
According to the RSI, buyers seem to be returning to the market after a bearish weekend session. The indicator is moving north after testing the region at 30. A step above the average (50) would encourage traders to make more buying entries as ETH/USD grinds towards $140 resistance. The Elliot Wave Oscillator suggests that selling pressure could continue in the coming sessions as long as the price stays under $130.