The Ethereum price managed to make small gains in the past 24 hours. The king altcoin, Ethereum, has seen gains of close to 6% in the last week.
However, at the moment the coin is moving mainly laterally.
As shown in the chart, Ethereum prices had fallen below their head-and shoulder patterns. This is a sign of bearishness.
Accordingly, buyers in the market were very low. Also, the technical outlook on one-day charts continued to appear weak.
A wide market decline has led to many notable altcoins moving down their respective charts.
The immediate resistance of $22,000 has kept the Bitcoin price from falling, however.
Buyers must move up if Ethereum is to make a swift and unimpeded transition north. The current bearish thesis will be invalidated if it moves above $1,600.
One-day Chart: Ethereum Price Analysis
At the time of this writing, ETH was trading around $1,560. The altcoin, which has been struggling a lot lately, is trying to climb a little higher on its chart.
This upward movement could soon be stalled if Ethereum price doesn’t manage to trade above the $1,600 price level.
This is only a temporary respite from the current price swing.
ETH prices must remain at or above $1,600 in order for the bears to retain control.
Ethereum was at $1,520 as the nearest support level. But, bears can push ETH to that level.
Altcoin’s next destination would be $1,470. Trading volume for ETH showed a significant increase as indicated by the green signal bars, which indicates that buyers are increasing slightly.
Technical Analysis
Altcoin has seen nearly two months of strong buying. However, the market was dominated by sellers at press time. Relative Strength Index was lower than zero which indicates that buyers are fewer.
A small rise in the RSI coincides with an increase in asset trading volume.
Ethereum prices were below the 20 SMA line, which is an indication that Ethereum sellers have been driving market momentum.
Ethereum may see an increase in demand if it is not already. This could bring relief and lower prices.
ETH’s other technical indicators sided with the bears at press time. All readings point to continued bearish strength in the chart.
It tracks market momentum, and predicts changes or reversals in it.
MACD showed red histograms below 50% after it had gone through a bearish cross-over, which was tied to the sell signal.
Directional Movement Index measures the price change of the coin overall and also shows the strength of current price movements.
DMI was negative because the –DI line was higher than the +DI.
The Average Directional Index was close to 20. This is an indicator of a declining price trend.
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