Ethereum Price Update:ETH/USD bears ready to drive the price to $300

Ethereum (ETH) hit the recent high at $488.88 on September 1 and has been in free fall ever since. The second-largest coin by the market capitalization dived to $335.23 on Saturday before recovering to $354 by the time of writing. ETH has lost over 6% on a day-to-day basis and over 10% in the last seven days amid a major sell-off on the global cryptocurrency market. 

ETH/USD: The technical picture

Ethereum's price dropped below the daily SMA50 at $370 and extended the sell-off towards $335 during early Asian hours on Saturday. While the losses have been partially recovered, the short-term trend is still bearish as long as ETH stays below the above-said SMA. A sustainable move above $370 will improve the immediate technical picture and allow for an extended recovery towards the psychological $400. A move higher will negate the bearish scenario and bring the resistance of $440 into view. 

ETH/USD the daily chart

Meanwhile, the RSI on a daily chart points downwards, signaling that strong upside momentum is less likely at this stage. A failure to regain the ground will worsen the technical picture and lay the ground for the further sell-off towards psychological support created by $300. This barrier is reinforced by the daily SMA100 and has the potential to slow down the bears. 

IntoTheBlock's "In/Out of the Money Around Price" (IOMAP) model reveals that 3.76 million addresses have their break-even point around $300. This cohort adds credibility to this support area and suggests that bears will struggle to push prices down. However, if they succeed, another crucial barrier of $244 (daily SMA200) will come into view.