Ethereum Slips, What Are The Next Vital Trading Levels For The Coin?


Ethereum is sliding on the charts again at the time of writing. Over the past week, the coin has lost about 10% of its value. The bears strengthened the market because the buyers left the market.

The technical outlook for the currency remains bearish and selling pressure is increasing. The currency will continue to remain so during the following trading sessions.

The coin has also seen a steady sell-off over the past 48 hours. Ethereum fell below the long-term support line at $1,900. Over the past 24 hours, the currency has attempted to recover itself but the bearish price action is still strong at the time of writing. Bears may exert pressure to push the coins below the $1,700 price mark.

A dip below the $1700 price mark will lead to a further decline in ETH by another 19%. For the bulls to take a breather, ETH needs to trade above the $1900 price mark again.

Ethereum Price Analysis: 1 Day Chart

Ethereum
Ethereum is priced at $1,700 on the intraday chart | Source: ETHUSD on TradingView

The altcoin is priced at $1,793 at the time of writing. The altcoin hasn’t traded near this price level in almost a year now. The altcoin’s upper resistance is at $1,900, until the downside pressure is negated, the coin should attempt to trade above $2,200.

The local support for the coin was at $1,700, and the coin could trade below if the bears continue to drive the price action. The volume of currency in circulation decreased and was seen in green. This indicates positivity on the chart.

Technical Analysis

Ethereum
Ethereum posted a surge in buying power on the intraday chart | Source: ETHUSD on TradingView

Ethereum was trading very close to the immediate support level. The currency was trading below the 20-SMA line which means that the selling momentum was active and strong. This reading means that sellers were responsible for the price momentum.

Corresponding to the same, the RSI was less than half of the line. This means that buying power was lower in the market. However, it can be seen that there is an uptick in the RSI which could be a sign that the buying force is gaining momentum.

The possibility of a reversal cannot be ruled out as there is a bullish divergence on the chart (yellow). Bullish divergence is associated with a trend reversal.

Related reading | Bearish Indicator: Is Bitcoin Heading Towards Its Ninth Weekly Close In Red?

Ethereum
Ethereum continues to generate blinking sell signals on the intraday chart | Source: ETHUSD on TradingView

The Awesome Oscillator was still negative on the intraday chart. The indicator is supposed to depict price momentum, while the red histograms show negative price action. The red graphs also depict a sell signal on the chart.

The directional movement indicator also decides the overall price action, and showed that -DI was above +DI level. The average trend indicator (red) was above the 40 mark, which means that the current market trend has been strong and the downtrend may continue during the following trading sessions.

Related reading | Ethereum profitability drops to 2-year low as price corrects below $2000



Leave a Comment

Your email address will not be published.