Ethereum can fuel further; This is what the charts say

The bear market has been pretty tough for all major altcoins, including Ethereum. In the past 24 hours, the currency has fallen 4%. Over the past week, however, Ethereum has been trying to bring about a recovery. Despite that, the bears continued to drag prices down.

Ethereum buyers have been trying to stay calm during most of the downturn. The constant pressure from the bears has caused the altcoin to experience less or almost no recovery. The technical side of the coin also pointed to a further drop in price before Ethereum starts moving up again on the chart.

In the recent development front, the altcoin has announced that the possible merger will take place in the month of August this year. It remains to be seen whether the price of the altcoin reacts positively to this news. A probability of a trend reversal cannot be ruled out, as the chart below shows.

Ethereum Price Analysis: One Day Chart

Ethereum traded at $1934 on the one-day chart | Source: ETHUSD on TradingView

Ethereum traded at $1900 at the time of writing. Continued decline below the current price level would result in the coin trading at $1700. If buyers remain scarce, the coin could see a further 30% drop and trade near $1200.

On the other hand, the coin may trade slightly above the $2000 mark and then try to trade above the $2200 mark. Ethereum traded volume continued to show in the red as bearish market pressures had not abated.

Technical analysis

Ethereum remains undervalued on the one-day chart | Source: ETHUSD on TradingView

A chance of a potential downswing cannot be ruled out as the one day chart displayed at death crosses. A death cross occurs when the short-term moving average is below the long-term moving average. On the SMA, 20-SMA was seen below 50-SMA, indicating weakness in the ETH price in the market.

The price of ETH was below the 20-SMA line as sellers drove the price momentum in the market. The Relative Strength Index was also weak in line with other technical data. The RSI was below the zero line, just above 20. This reading meant that sellers were way ahead of the number of buyers at the time of writing.

Ethereum Depicted Negative Price Momentum on the One-Day Chart | Source: ETHUSD on TradingView

Moving Average Convergence Divergence reflects the price momentum of the market. MACD flashed red histograms below the zero line, signaling continued bearish price action for the coin.

Awesome Oscillator also showed green histograms below the half-line, consistent with the MACD. AO blinking histograms below the half-line indicated a sell signal for Ethereum.

Related literature | Exchange Inflows Rock Bitcoin, Ethereum As Market Struggles To Recover

Possibility of a price reversal?

Ethereum formed a falling wedge pattern on the one-day chart. A falling wedge pattern is associated with a change in current price action or a trend reversal. At this point, Ethereum was in bearish price momentum.

Since the falling wedge pattern was formed, the probability of the coin rebounding cannot be ignored. In the case of a move north, the first resistance was USD 2093 and then USD 2200 respectively. To invalidate the bearish stance, Ethereum must trade above USD 2900.

Related literature | Ethereum gears up for Ropsten Testnet merger as token struggles to maintain $2k support

Featured image from UnSplash, charts from

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