The Ethereum market has recently experienced a price breakdown from its monthly support level at $1827, indicating that this altcoin may be poised for a more extended correction. However, it’s important to note that the falling price has encountered substantial demand pressure near the 100-day EMA at $1766, suggesting that buyers have not yet given up on this cryptocurrency. In the coming week, Ethereum holders and traders may have to keep their eyes peeled for a fierce competition between buyers and sellers as they both attempt to claim control over the coin’s trend.
Ethereum’s ongoing correction phase is characterized by a downsloping resistance, and the breakdown below the $1827 mark sets the stage for a potential fall of up to 12% to reach $1600. The intraday trading volume for Ether stands at $4.39 billion, indicating a 49% loss. Although sellers managed to force a decisive break from the $1827 support on May 11th, their inability to provide a significant follow-up suggests a possible weakening of bearish momentum. Currently, Ethereum is trading at $1803, with an intraday gain of 0.42% and hovering between the $1827 level and the 100-day EMA slope.
If the buying pressure continues, Ethereum’s price may retest the breached support as potential resistance. Should the sellers manage to keep prices below the $1827 level, the correction phase could extend by 11.5%, retesting the combined support at $1600 and a long-coming support trendline. Conversely, if Ethereum’s price surges above $1827, the bearish momentum could weaken. However, traders should only expect adequate confirmation of recovery once the price breaches the overhead trendline.
There are a few technical indicators to consider in this situation. The Relative Strength Index (RSI) shows a clear bearish divergence between Ethereum’s price and the RSI slope peak, demonstrating underlying weakness in bullish momentum. This trend suggests that Ethereum is likely to endure a prolonged correction towards $1600. Additionally, the Exponential Moving Average (EMA) shows a potential bearish crossover between the 20-and-50 EMAs, which could incite selling pressure in the market.
Ethereum’s intraday price levels currently stand at:
Spot rate: $1767
Trend: Bearish
Volatility: Medium
Resistance levels: $1830 and $1920
Support levels: $1700 and $1600
Keep in mind, the content presented here includes personal opinions and is subject to market conditions. Always do your research before investing in cryptocurrencies, as the author and the publication hold no responsibility for any personal financial loss.
Source: Coingape
