Ethereum Keeps Sliding Down, Will The Support Line of $1,100 Break?


Ethereum continued its bearish trajectory as the coin has now found a support level at $1,100. Over the past two days, the coin rallied and touched the $1,200 level, but shortly after that, it saw a pullback on the chart. Ethereum’s strong resistance is currently at $1,300.

The technical outlook for the coin remained bearish as well. Over the past 24 hours, ETH has lost 9% of its value and negated most of the gains it made in the past week. After the bulls were unable to break the $1,300 price ceiling, the coin tumbled.

ETH has depicted a uniform price range with the asset’s price sandwiched between $1,280 and $1,110, respectively. If Ethereum does not rise above $1,300, the price may drop and drop below the $1000 mark. The buying power has also faded as the price of the coin continues lower on the chart. Today, the global cryptocurrency market capitalization is $937 billion with a decline in 5.5% in the last 24 hours.

Ethereum Price Analysis: 1 Day Chart

Ethereum
Ethereum is priced at $1,111 on the 1-day chart | source: ETHUSD on TradingView

ETH is trading at $1,111 at the time of writing. The coin has immediate support at $1,000, but if ETH starts dropping, the coin could trade at the $900 price level. The immediate resistance stood at $1,200 and then $1,300.

The last time the altcoin hovered around this price zone was in January 2021. If Ethereum drops to $900, it will be a new low for the coin in 2022. If the price of the altcoin can jump to $1,300 and trade above that level for a while Significantly long, a rally to $1,700 may be possible.

Ethereum volume has decreased on the 24 hour chart which means less buying power. The volume bar was in red indicating a downtrend.

Technical Analysis

Ethereum
Ethereum shows a decrease in buying pressure on the intraday chart | source: ETHUSD on TradingView

ETH has been sold off in the past 48 hours, but the coin has recovered and moved above the oversold territory. Despite this recovery, Ethereum buying pressure remained very low on the chart. The RSI noticed bearish and is approaching oversold again.

The continued decline in demand could cause Ethereum to touch the $900 level during the following trading sessions. On the 20-SMA, the coin was seen below the 20-SMA line. A reading below the 20-SMA line means that the sellers were driving the price momentum in the market.

Related reading | Why can Ethereum trade for $500 if these conditions are met

Ethereum
Ethereum is blinking a buy signal on the intraday chart | source: ETHUSD on TradingView

ETH has noticed a decrease in buying power even though the coin is flashing a buy signal on the intraday chart. Moving average convergence divergence depicts price momentum. It displayed a bullish cross and flashing green signal bars which are buy signals for the currency.

It is possible that the current price level will turn into an altcoin demand area. Chaikin Money Flow showed capital inflows and outflows on the chart. The CMF was less than half of the line which means that the capital inflows were less than the capital outflows which indicates a downward trend.

Suggest reading | Ethereum needs to break through this level to maintain the bullish pace

Featured image UnSplash, chart from TradingView.com



Leave a Comment

Your email address will not be published.