All major altcoins, including Ethereum have been hit hard by the bear market. The coin has dropped by 4% in the last 24 hours. Ethereum has attempted to make a comeback in the last week. Despite that, bears continue to drive prices lower.
During the majority of the downswing, Ethereum buyers have tried to stay calm. Altcoin has seen little to no recovery due to the constant push of the bears. The technical of the coin also pointed towards further fall in price before Ethereum starts to rise on the chart again.
Altcoin announced that it will merge in August, according to recent developments. It is to be seen if the altcoin’s price reacts positively to this news. As the chart above shows, there is no way to rule out the possibility of a trend reverse.
Ethereum Price Analysis: 1 Day Chart
At the time this article was written, Ethereum was trading at $1900. If the price falls further, the currency could trade near $1700. If there are no buyers, the coin might see a 30% drop in value and could trade as low as $1200.
The flipside is that the coin could trade slightly above $2000 and then try to trade at the $2200 level. Because bearish pressure in the market had not decreased, Ethereum volume traded was seen as red.
Technical Analysis
The death cross chart shows a one-day chart that suggests a possibility of soaring. When the short-term moving average falls below the long-term moving average, it is called a death cross. On the SMA, 20-SMA was seen below the 50-SMA indicating weakness of ETH’s price in the market.
ETH’s price was below the 20-SMA line because sellers were driving the price momentum in the market. Relative Strength Index (RSI) was similarly low to other techincals. RSI was just below the 20-mark and below the zero line. This means that the sellers were more influential than the buyers in the moment of writing.
This chart shows the market’s price momentum. MACD displayed red histograms below the zero-line, which indicates a continuation bearish price action.
Awesome Oscillator showed green histograms at the bottom of the MACD. AO flashing histograms under the half line indicated a sell signal.
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Possible Price Reversal
On the one-day chart, Ethereum created a falling wedge pattern. The formation of a falling wedge pattern is associated with changes in the current price action, or trend reversal. Ethereum’s price momentum was bearish at the time.
A falling wedge pattern formed, the possibility that the coin will rebound cannot be overlooked. If there was a northbound move, the first resistance was located at $2093 and then $2200. Ethereum has to trade above $2900 in order for the bearish stance of Ethereum to be invalidated.
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