Ethereum (ETH) Price Falls Rapidly After Losing Critical Support at $1,600
Long-term Analysis of the Ethereum Price: Bearish
The Ethereum price is experiencing a rapid decline after losing critical support at $1,600. The bulls initially broke the 21-day line Simple Moving Average (SMA), but their upward momentum was not sustained. As a result, the cryptocurrency fell to a low of $1,580. If the bulls had prevailed, Ethereum would have risen above the moving average lines and potentially continued its positive momentum above the $1,700 support level. However, it is expected that the decline will continue as the bears take control of the market. Sellers will likely attempt to push the altcoin to its previous low of $1,530, and if they succeed in breaking this level, further selling pressure may occur, causing Ethereum to drop even lower to $1,410.
Ethereum Indicator Analysis
Ethereum has fallen to a Relative Strength Index (RSI) low of 38 for the 14-period timeframe, indicating that it is gradually entering the oversold zone. If the 21-day line SMA resists the price bars, Ether will likely continue to fall. The moving average lines are currently limiting Ethereum’s upward movement, and the altcoin is in a negative trend below the daily stochastic threshold of 40.
Technical Indicators
Key resistance levels for Ethereum are at $1,800 and $2,000, while key support levels are at $1,600 and $1,400.
What Is the Next Direction for Ethereum?
The next direction for Ethereum will be determined by whether or not it falls below $1,530. If it falls below this level, the altcoin may drop to lows of $1,410 and $1,370. On the other hand, if Ethereum manages to rise above $1,530, it could reach a high of $1,700.
According to cryptocurrency analytics specialists on September 18, 2023, Ethereum experienced a decline to a low of $1,532 before rebounding. Although it reached a high of $1,654, the upward correction failed to break above the 21-day line SMA.
Hot Take: Ethereum Faces Bearish Trend as Price Falls Below Critical Support
The recent decline in the price of Ethereum has resulted in a bearish trend for the cryptocurrency. After losing critical support at $1,600, Ethereum has fallen further and is currently trading around $1,580. The bears have taken control of the market, pushing the altcoin towards its previous low of $1,530. If this support level is broken, Ethereum may face additional selling pressure and drop even lower to around $1,410. However, if the bulls manage to regain control and push the price above $1,530, we may see a potential recovery towards the $1,700 level. Overall, the outlook for Ethereum remains uncertain as it continues to face downward pressure.
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