Momentum readings have been improving in the past few days as ETH neared oversold levels. The Relative Strength Index (RSI) has not yet sent a buy signal but it is currently sitting on top of the signal line.

Meanwhile, the MACD’s histogram posted its first positive momentum reading today but the American session has just started so this could change at any point.

After breaking below the $2,100 level, ETH seems to have entered consolidation. Bulls would have to recapture this level to stand a chance to stop the asset from falling off a cliff.

It seems that bears have the upper hand at the moment as both the weekly and daily charts favor a negative outlook for ETH.

The hourly chart shows that ETH has been in consolidation since last Tuesday, moving up and down within a well-defined range between $1,960 and $1,820 during that period. However, the price action has been making multiple higher lows since it hit that lower bound.