Ethereum received several rejections over the past week at $1,280. It is still striving to fall above this price level. Since July 8, ETH trades in a down channel.
Ethereum has lost 3.3% in the past 24 hours which, to a certain extent, reversed its week-end gain. The technical outlook is bearish for the near term. Price could be pushed higher by the multiple pullbacks Ethereum has experienced. In this case, ETH may target resistance levels at or above $1280.
Other strong obstacles for Ethereum were $1420 ($1540) and $1540 ($1540). A stronger market can boost Ethereum’s momentum. Bitcoin, however, is still struggling to recover its $20,000 price.
Most altcoins have followed the same price movements. If Bitcoin shows signs of improvement on its charts, buying strength will also begin to rise. Sellers continue to be the dominant force in Ethereum.
Ethereum Price Analysis: 4 Hour Chart
ETH trades at $1,140 as of the writing. The coin traded at $1,140 and was close to the critical $1,000 price level. There were three pullbacks in price at the $1280 level.
A pullback could cause ETH’s price to rise above $1,280. After $1,280 the barriers stood at $1.440 and $1.540.
If ETH’s price falls below $1,140, the stock could plummet to $900. Market conditions make it possible that the price could fall again.
The volume of Ethereum transactions fell significantly, indicating that bearish pressure is causing a drop in buying pressure.
Technical Analysis
The buying strength of ETH has been in decline over the last few weeks. Similar results were also shown by the Relative strength Index.
The RSI fell below the half-line and slid downwards. An RSI reading lower than the half-line indicates increased market selling pressure.
The 20-SMA level was lower than the price of ETH, which indicated that there had been a sale. Market sellers were the ones responsible for the current price momentum.
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ETH’s buying pressure has remained low and the same has been demonstrated on its four hour chart. A Moving Average Convergence Divergence is a sign of price momentum, and the possibility for a reverse. MACD was subject to a bearish crossover, and showed red histograms.
A sell signal is indicated by the red histograms. This explanation explains Ethereum’s sell-off. Bollinger Bands represent the asset’s volatility.
Bollinger Bands have slightly opened which could indicate an anticipatory fluctuation of the asset’s price. ETH could see a fall to $1,000 in the event of a new decline. On the other hand, it may be able to surpass the $1,280 resistance level.
Ethereum continues to need the support of its buyers.
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Featured Image from UnSplash. Charts by TradingView.com
