Laterally, the Ethereum price fluctuated between $1,700 and $1.600. Ethereum was currently at the $1400 support level. Ethereum’s price has fallen over 4% in the past 24 hours.
Bearishness started to prevail on ETH’s chart and technical outlook pointed towards the same direction. To see the bulls resurface Ethereum’s price, it must rise above $1745 in price.
Incase ETH manages to break past the $1,745 price mark and remains above that level, chance of revisiting $2,000 aren’t bleak.
The market was closed as buyers fled the currency after it experienced a four-hour sell-off. In the event that sellers seize control of the market, the Ethereum price could trade close to $1,300.
The price of Ethereum has been showing positive activity over the last week. However, bulls failed to maintain the momentum. Also, the September Ethereum merger will likely have an impact on Ethereum’s price.
This software update will change the status of the token from Proof-of–stake to Proof-of–work. The new network will have validators, which would make mining obsolete.
Ethereum Price Analysis. Four-hour Chart
The four-hour chart showed that ETH was trading around $1,590. At the moment, the currency has managed to remain above the $1500 support line. If the sellers begin to outnumber the buyers, Ethereum could see a drop in price to $1,300.
In the week that has just passed, the price of the coin fluctuated between $1.700 and $1.600. The immediate price resistance of the coin was $1,745; bulls will need to return if ETH moves higher than that level.
Support for Ethereum was local at $1.471; a push from bears could see Ethereum trade down to $1.300. Low Ethereum trade volume reflects bearishness, as sellers return to the chart.
Technical Analysis
Altcoin captured the negative effects of a market sell-off, as all indicators pointed towards price movement. When sellers took over, the Relative Strength Index was below the 50% mark.
Ethereum’s value will fall further if there is continued selling pressure. This reading, which was lower than the 20-SMA level of Ethereum’s price, was considered bearish.
That meant sellers were driving price momentum.
Ethereum flashed a sell signal on the 4 hour chart. Source: TradingView.| Source: ETHUSD on TradingView
ETH’s other indicators were in agreement with the fall in buying pressure. The Ethereum price continued its losses and the chart showed a sell signal. This chart shows the direction of the price and the change in it.
MACD experienced a bearish crossover, which led to the emergence of red histograms that are linked to a sell signal. Parabolic SAR identifies the current trend in the market, the reading suggested that there was a downtrend as the indicator’s dotted lines were above the candlestick.
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Featured image by UnSplash. Chart from TradingView.com