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

Ethereum has slipped back into the charts at the time of writing. In the past week, the coin lost about 10% of its value. The bears have become stronger in the market as the buyers have left the market.

The currency’s technical outlook remained bearish and selling pressure mounted. The coin would remain that way through subsequent trading sessions.

The coin has also witnessed a sustained sell-off in the past 48 hours. Ethereum fell below its long-standing $1900 support line. Over the past 24 hours, the coin has been trying to recover itself, but bearish price action is still strong at the time of writing. The bears may be exerting pressure to push the coins below the $1700 price.

A drop below the $1700 price level will send ETH down another 19%. To give the bulls a breather, ETH must once again trade above the $1900 price.

Ethereum Price Analysis: One Day Chart

Ethereum Was Priced At $1700 On The One Day Chart | Source: ETHUSD on TradingView

The altcoin was priced at $1793 at the time of writing. The altcoin has not traded near this price level for almost a year. The altcoin’s overhead resistance was at $1900, to invalidate bearish pressures the coin must try to trade above $2200.

Local support for the coin was $1700, which the coin could trade below if the bears continue to drive price action. The volume of the traded currency decreased and was shown in green. This indicated positivity on the chart.

Technical analysis

Ethereum registered an increase in purchasing power on the one-day chart | Source: ETHUSD on TradingView

Ethereum was trading very close to the immediate support level. The coin traded below the 20-SMA line, meaning its selling momentum was active and strong. This reading meant that sellers were in charge of price momentum.

Consistent with that, the Relative Strength Index was below the half-line. This reduced purchasing power in the market. However, it can be noted that there is a rise in the RSI, which could be a sign that purchasing power is gaining momentum.

The possibility of a reversal cannot be ruled out because there is a bullish divergence on the chart (yellow). A bullish divergence is related to a trend reversal.

Related literature | Bearish Indicator: Is Bitcoin Heading For Its Ninth Red Weekly Close?

Ethereum Continued to Flash Selling Signals on the One-Day Chart | Source: ETHUSD on TradingView

The Awesome Oscillator was still negative on the one day chart. The indicator is supposed to reflect price momentum, the red histograms show negative price action. The red histograms also show a sell signal on the chart.

The Directional Movement Index also determines the overall price movement, and it showed -DI was above the +DI level. The average directional index (red) was above 40 meaning the current market trend was strong and bearishness could continue during the following trading sessions.

Related literature | Ethereum’s profitability plunges to 2-year low as price corrects below $2,000

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