Ethereum (ETH), which is currently down 20%, has triggered a negative sentiment within the market.
- Ethereum stalls and fails to make a comeback in the last week
- ETH flunks at reclaiming $2,000 level
- Ethereum RSI indicates a bearish stance
Additionally, Ethereum also didn’t make it to the $2,000 mark. The bears seek to hammer down Ethereum’s price and beholden to the bulls.
The daily chart only shows a rise wedge pattern, which indicates that there could be a continued bearish trend. Bulls want to prevent a fall below $1,700-1,800.
The RSI of Ethereum also fell below its baseline, indicating that bears now dominate the market.
According to CoinMarketCapEthereum has fallen 21%, and is currently trading at $1571.25
Ethereum generates huge selling pressure
The $1520-$1570 area is the next level of support for the ETH/USD pair. The convergence of the 50-day moving mean line and 100-day moving median is what created this new support line.
A bear structure could form if the level is breached. This can cause Ethereum to drop as low as $1,280. The bulls must keep Ethereum’s price at or above $1,700 to sustain bullish momentum.
As Ethereum heads south, it has been under huge selling pressure. This is a great opportunity to catch a bargain. With Ethereum’s 21% decline, this proves to validate that the bears were able to breach the ascending wedge, an important signal for bears to penetrate the market.
While Ethereum was at the $1900 level or in an uptrend, there was a warning about a liquidation. This may only occur when the liquidity levels are close to $2,000.
ETH Pullback Expected to Reach $1,900
Ethereum reached an August 12 high of $2,000.30 before falling. The bears are now above the moving averages of 8 and 21 days. The weekend may see a pullback.
Another theory that likes to be auctioned suggests that the potential for retracement towards the $1450 and $1571 levels is possible. The volume profile indicator for ETH is also bearish, particularly with the stronger selling pressure in the one-hour time frame.
If the bulls are able to reach the $2030 mark, the downward trend in ETH could be retracted. This could be a positive for bulls looking to grab knife-catching opportunities between $1,980 and $1420. This means that the maximum pullback target will be $1,984.
ETH Total Market Cap at $191 Billion on Daily Chart | Source: TradingView.com Featured image taken from Coinpedia. Chart from TradingView.com
