As the world market came under severe pressure, Ethereum failed to break the $4,535 resistance level and fell to $4,310 at the 20 EMA.

Global Cryptocurrency Market Panic

The news about the new variant of the coronavirus from South Africa caused real panic. Traders poured into safe assets and sold higher-risk assets. Cryptocurrencies are also under material pressure.

Bitcoin failed to close at $58,700 above the 50 EMA and fell below $57,000. Bitcoin’s most recent support is $56,000, If Bitcoin drops below these levels, it will gain additional bearish momentum and move towards the next support level of $53,600, which will be bearish for Ethereum.

Unsurprisingly, other cryptocurrencies are also falling today. Shiba Inu lost momentum after trying to close above the 20 EMA at $0.00004650 and trying to settle back below $0.00040. Dogecoin recently managed to break below an important support level of $0.2150. Solana is testing the 50 EMA at a price of $202.20 while XRP is trying to settle below $1.00.

Ethereum Price Technical Analysis

Ethereum is currently testing the 20 EMA support at $4,310. If this test is successful, Ethereum will hit the next level of support near $4,200.

ETH/USD Daily Chart. Source: TradingView

Successfully testing the support level of $ 4,200 will pave the way for testing the next support level of $4,100. If Ethereum manages to stabilize below this level, it will move to the next support at the $4,000 level near the 50 EMA.

On the plus side, Ethereum needs to break the $4,535 resistance level for a chance to approach historic highs. If Ethereum stabilizes above this level, it will move towards the next resistance level at $4,650.

A break of $4,650 will push Ethereum to the resistance level of $4,770. If Ethereum successfully breaks the resistance level of $4,770, it will move towards the next resistance level of $4,865.