Ethereum fell below the $1,600 level of support and displayed bearish sentiments on the chart. Broader market weakness has also contributed to Ethereum’s current price action.
Bitcoin fell to $20,000 and other altcoins showed similar price movements.
Over the last 24 hour, Ethereum showed some slight appreciation in the chart. The altcoin’s technical outlook remained bearish.
Buying strength had fallen over the past two days and at press time the coin ‘s movement was dominated by sellers.
ETH could be pulled to $1,100 by continued selling pressure before the price rises again.
If bulls make their way back to the market, ETH may continue to consolidate its chart and try to move up.
To invalidate the bearish thesis, Ethereum must see a significant increase in buying strength. Ethereum has lost 4% over the past week.
Ethereum Price Analysis: 4 Hour Chart
At the time of writing, ETH was exchanged at $1472. Although Ethereum experienced a steep fall after the crash, it attempted to rebound slowly. However bearish pressure was strong on the market.
Altcoin had overhead resistance at $1.542, and falling prices will bring Ethereum to $1.260.
To negate the bearish thesis, Ethereum must trade at least $1,600 for more than just a few trading session. If buying strength doesn’t display consistency then Ethereum can fall to $1,100 in just a matter of time.
The last session saw an increase in ETH trading volume, which indicates that buyers strength is struggling to climb north.
Technical Analysis
Altcoin’s price increased over the past 24 hours, but technical outlook was bearish. However, buyers tried to rebound.
The Relative Strength Index remained below its 50% mark, but there was an increase in indicator activity over the previous trading sessions.
The four-hour chart showed that purchasing strength had recovered.
The altcoin price was still below the 20 SMA line despite the recovery. A reading below this line indicates that sellers are driving price momentum in market.
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A sell signal can directly be tied to price falls. Moving Average Convergence Divergence illustrates price momentum as well as reversals within the same.
MACD was subject to a bearish crossover. It flashed red signals bars that are linked to the sell signal.
Directional Movement Index shows price direction as well as where the coin will go next. The -DI was higher than the +DI, so DMI was lower.
Average Directional Index (Red), was lower than 20 which indicated that current price action was slowing down.
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Featured Image from UnSplash. Chart by TradingView.com