The price of ethereum broke the 1980 support level and also pushed below the 200 day MA.
This is indeed bearish price action and not great for the near-term. However, it actually may bold well a couple of months from now.
Darkest before Dawn
With price failing the 1980 level, which has been a pivot point for some time now and pushing below the 200 day MA for the first time since March 2020 you would think my optimism would be low.
However, what I noticed is the reaction of price after pushing beneath the 200 day MA. That reaction is generally positive.
As in price only stays below it a few weeks to a few months max and then resumes a push upward, even if it is a slow grind on some occasions.
So, on a little bit longer view this event can possibly be looked at as bullish.
Looking at the chart above, you can see it is zoomed out to show the last two times price dipped below the 200 day MA (highlighted in yellow). Though it is tough to clearly make out, you can still see price only remained below that MA for a few months and just a few weeks in the latter example.
If price needs to languish for a month or two before rallying again, that is fine by me.