Amid the broader market sell-off, the Ethereum price has been falling for six consecutive days. From the psychological barrier of $2000, the coin price plunged 9.66% and reached its current price of $1821. However, with this downfall, the sellers also breached a long-coming support trendline, which was carrying the ETH price recovery for nearly two months. Here’s how this breakdown may influence the future price of this number two cryptocurrency.
The Ethereum Fear and Greed Index at 48% projects a neutral sentiment among traders, and the Ethereum price breakdown below the $1827 support threatens a potential 17% fall. Meanwhile, the intraday trading volume in Ether is $10.4 billion, indicating a 77.46% gain.
With an intraday fall of 1.2%, the Ethereum price shows a bearish breakdown below an ascending support trendline. The coin price bounced back four times from this support in the last two months, suggesting that traders were accumulating at dips and keeping a sustained bullish run. However, with the recent breakdown, we can expect a shift in market sentiment from buying on dips to selling on rallies. Along with this support trendline, the price also shows a drop below the horizontal support of $1827, and a 23.6% Fibonacci retracement level, accentuating the significance of losing this support.
However, the price needs to confirm two criteria to obtain a short opportunity; which is a daily candle closing below the aforementioned support and a suitable volume hike. If these conditions are met, the ETH price is likely to drop 17% to hit the $1500 mark. However, if the coin price did not give a decent follow-up and rise back above the trendline, the bearish thesis will get invalidated.
As for technical indicators, the Moving Average Convergence Divergence (MACD) suggests a downsloping trend of the blue line and signal (orange), reflecting a bearish market momentum. The breached 20-and-50-day Exponential Moving Averages (EMAs) may offer an extra edge to short-sellers.
Overall, Ethereum’s coin price intraday levels are as follows: the spot rate is at $1821, the trend is bearish, and volatility is medium. Resistance levels are at $1830 and $2000, while support levels stand at $1700 and $1650.
As always, it is crucial to do thorough market research before investing in cryptocurrencies. The presented content may include the personal opinion of the author and is subject to market conditions. Neither the author nor the publication holds any responsibility for personal financial loss.
Source: Coingape
