Ethereum (ETH) started the week with a promising performance, experiencing a gain of over 3%. Nonetheless, the positive tendency momentum was short-lived as the crypto altcoin failed to maintain its position over a key resistance level. Within the past 24 hours, ETH’s market price has declined by nearly 3%.
Throughout the week, the Ethereum (ETH) price has shown limited progress, with the bears dominating the price movement. The altcoin’s technical outlook signifies a decline in buying strength, accompanied by low demand and accumulation on the daily chart.
To prevent further strengthening of the bears, it is critical for Ethereum (ETH) to surpass its immediate resistance in the following trading sessions.
Failure to do so may lead to additional pressure from sellers, potentially causing Ethereum (ETH) to breach its immediate level of support and experience a whole lot of loss in value during future trading sessions. In addition, the fall in the Ethereum (ETH) market cap suggests an boost in selling strength, as observed on the daily chart.
Ethereum (ETH) Price Analysis: One-Day Chart
At the time of publication, the trading price of Ethereum (ETH) was $1790. Regardless of trying to trade within the $1800 price range, the crypto altcoin encountered selling pressure, resulting in its depreciation. The present overhead resistance for Ethereum (ETH) is $1810. If the crypto altcoin surpasses this resistance level, it has the capacity to trigger a rally in its price.
On the other hand, if the current price level experiences a decline, Ethereum (ETH) is very likely decline further to $1750 before sooner or thereafter reaching the $1700 price mark. The past few session saw a decrease in the volume of Ethereum (ETH) traded, indicated by the red colour, indicating a weak buying strength.
Technical Analysis
Throughout these 30 days, Ethereum (ETH) experienced a decline in demand, resulting in reduced buying strength. The Relative Strength Index (RSI) dropped below the midpoint line, suggesting a decrease in demand and an boost in selling pressure on the chart.
In addition, the price of Ethereum (ETH) dropped below the 20-Simple Moving Average (SMA), indicating that sellers were dominating the market’s price momentum.
Given that Bitcoin’s price movement remains uncertain, plenty of crypto altcoins, including Ethereum (ETH), have followed a similar price trajectory. Nonetheless, if Ethereum (ETH) profits broader market strength, there is a possibility that demand could return, causing Ethereum (ETH) to surpass the 20-SMA line and potentially go up higher.
Owing to the absence of demand, Ethereum (ETH) did not exhibit whole lot of buy indicates. The Moving Average Intersection Divergence (MACD), a tool used to indicate price momentum and potential tendency reversals, showed small green histograms that do not provide conclusive buy indicates at this point.
The Bollinger Bands, which measure price volatility and potential fluctuations, have maintained a parallel shape. Nonetheless, they displayed slight intersection, suggesting that Ethereum (ETH) may trade during a relatively stable range without substantial price fluctuations.
To reclaim the $1800 price level, it is critical for buyers to re-enter the market at the present price level. Their participation is essential for Ethereum (ETH) to regain strength and potentially push the price higher.
