The Ethereum Price Analysis: A Bearish Outlook
According to a recent report, the Ethereum price (ETH) has dropped back to the critical support level of $1,600 after the bulls were unable to sustain their upward momentum above $1,700. The rally on August 29 was short-lived, as the altcoin entered an overbought market zone.
The recent high led to selling activity and a decline in Ether. As a result, the ETH/USD pair is expected to trade between $1,600 and $1,700, with a potential decline and retest of the previous low at $1,537 if the bears break below the existing support. Currently, the altcoin is trading at $1,634.
Ethereum Indicator Analysis
Ether is still trading above the crucial support level of 36 on the Relative Strength Index for the 14-day period. It is currently correcting upwards and has surpassed the daily Stochastic barrier of 20. However, the upward momentum is fading at the recent high.
Technical Indicators
Key resistance levels for Ethereum are $1,800 and $2,000, while key support levels are $1,600 and $1,400.
What’s Next for Ethereum?
Ethereum is currently stabilizing above the $1,600 support level. The existence of doji candlesticks and the fact that the support level has not been breached since March 27 suggest that it is likely to hold. However, a price rise above the current support level would indicate the start of a new upswing.
Last week, there were attempts by bears to push Ether to a low of $1,400, but the price rose back above $1,700 without sustaining the upward momentum.
Hot Take:
The Ethereum price is currently facing resistance and struggling to maintain its upward momentum. It is crucial to monitor the support level at $1,600, as a break below this level could lead to further declines. On the other hand, a price rise above $1,700 would signal a potential bullish trend. Keep an eye on the market indicators and watch for any significant developments in the coming days.
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