Ethereum Price Remains Constricted, Can It Move Above $1,900?


Ethereum price traded sideways between $1700 and $1600. At the moment, Ethereum has been steadily standing at the $1400 support line. Over the past 24 hours, the price of Ethereum has fallen by more than 4%.

The bearish trend started to prevail on the ETH chart and the technical outlook was pointing the same way. For bulls to reappear, the price of Ethereum must rise above the $1,745 price ceiling.

Incase ETH managed to break above the $1,745 price mark and stay above that level, the chance of a re-visit at $2000 is not bleak.

Buyers exited the market as the currency faced selling on the four-hour chart. Ethereum price may trade near the $1,300 price mark in case the sellers dominate the market.

Over the past week, Ethereum noticed positive price action, however, the bulls were unable to hold onto the momentum. The price of Ethereum is also likely to be significantly affected by the Ethereum merger due in September.

In this software upgrade, the token will move from Proof of Stake (PoS) consensus to Proof of Work (PoW) consensus. This would render mining useless as the validators would be responsible for securing the new network.

Ethereum Price Analysis: Four Hour Chart

Ethereum price
Ethereum is priced at $1,590 on the 4-hour chart | source: ETHUSD on TradingView

ETH is trading at $1,590 on the four-hour chart. The coin has currently managed to stay afloat above the $1500 support line. If the number of sellers begins to overwhelm the buyers, the price of Ethereum may soon drop to $1,300 on its chart.

Over the past week, the coin has been moving up and down between the $1,700 and $1,600 price levels, respectively. Spot resistance was at $1,745 and for the bulls to return, it is necessary to move ETH above this level.

Local support for the coin was at $1,471 and a push by the bears could set Ethereum price trading as low as $1,300. Ethereum trading volume remained low highlighting the downtrend as sellers returned to the chart.

Technical Analysis

Ethereum price
Ethereum is showing a bearish buying force on the 4-hour chart | source: ETHUSD on TradingView

The altcoin picked up the effects of the selloff as indicators point to negative price action. The RSI was below the half line as the sellers dominated the market.

Continued selling pressure will cause Ethereum to lose significant value. Ethereum price was below the 20-SMA line, and this reading was considered bearish.

This means that the sellers were driving the price momentum in the market.

Other ETH indices were consistent with lower buying pressure. With the price of Ethereum continuing its losses, the coin continues to portray a sell signal on its chart. Moving average convergence divergence depicts the price direction and change in it.

The MACD underwent a bearish crossover resulting in red histograms associated with a sell signal for the currency. The Parabolic SAR determines the current trend in the market, the reading indicates a downtrend as the dotted lines of the indicator were above the candle.

Related reading | TA: Ethereum Eyes Fresh Rally if it clears this key breakout area

Featured image from UnSplash, chart from TradingView.com



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