The crypto market witnessed a high momentum breakdown in Ethereum’s price on June 10th, as it fell from the $1775-$1764 support zone. This crucial price level has supported buyers for over two months despite the highly volatile phase. As a result, the price took a sharp dip, likely to intensify selling pressure on Ethereum and extend its current bearish phase. ETH saw a bearish breakdown below the $1775-$1764 level, potentially resulting in a 6% drop. Its intraday trading volume stands at $4.6 billion, indicating a 0.27% loss.
With the Ethereum price falling below the last swing low of $1775-$1765, the coin seemingly continues its correction phase. At press time, ETH trades around $1750, with a slight intraday gain of 0.14%. Assuming the price sustains above the breached support in the next few days, ETH could slide lower and approach the $1700 level. This psychological support, in alignment with the 200-day EMA, presents an attractive opportunity for buyers to accumulate.
However, should the price break below $1700, it may be pulled back to the combined support of $24000 and the ascending trendline. This dynamic support can offer traders significant pullback opportunities, as seen in the past during December 2022, January, and March 2023. On the other hand, a breakdown below the support trendline with daily candles closing could result in a free fall for Ethereum.
Despite the overall market sentiment hinting at a downturn in Ethereum’s price, the daily chart depicts crucial support that can potentially hold buyers at higher levels. The $1700 horizontal support and the angular trendline act as suitable accumulation zones, possibly mitigating the decline and regaining bullish momentum. As long as the support trendline remains unchanged, the ETH price likely won’t fall below $1650.
The directional movement index shows a growing gap between the DI slopes in a bearish alignment (DI- above DI+), suggesting a bearish sentiment among traders. Furthermore, the exponential moving average reports a bearish crossover between the 20-and-50-day EMA, potentially adding more selling momentum to Ethereum’s price.
In summary, Ethereum’s recent price drop signals its ongoing correction phase, with $1700 horizontal support and the angular trendline as possible accumulation zones to offset further decline. However, investors should conduct thorough market research as the author and publication hold no responsibility for personal financial loss.
Source: Coingape
