After a series of setbacks and consistent bearish trends, Ethereum (ETH) recently neared a significant juncture close to a crucial support area, particularly defined by the 61.8% Fibonacci retracement level. However, Ethereum’s price managed to bounce back from this pivotal region, injecting a ray of hope amid the prevailing bearish sentiment. This rebound also suggests the possibility of a temporary consolidation phase. Presently, Ethereum is valued at $1,647.78, reflecting a 0.81% decline over the last 24 hours.
Examining Ethereum’s Prolonged Bearish Trend
Ethereum has faced an extended period of bearishness, breaking through several crucial support levels, including the significant 100 and 200-day exponential moving averages. Consequently, Ethereum reached its lowest point in months at $1,531.
Currently, Ethereum’s price has reached a critical support range, spanning between the 50% and 61.8% Fibonacci retracement levels. This zone is seen as a last line of defense for Ethereum bulls. A breach below this key level could increase the risk of a significant downward trend.
Additionally, the 100-day EMA recently crossed below the 200-day moving average, forming a death cross, a strong bearish signal. Despite these bearish indicators, there’s optimism that Ethereum may find support and enter a consolidation phase near the 200-day and 100-day EMAs.
Ethereum’s Critical Support and Rebound
When examining the 4-hour ETH chart, readers will notice a consolidation phase between $1.6K and $1.8K. During this period, a bearish flag pattern emerged, leading to a break below the flag’s lower trendline and a notable decline.
However, as Ethereum approached the crucial $1.5K support, buying pressure increased, resulting in a bounce back. This led to a retracement towards the previously broken flag’s lower boundary, potentially forming a pullback. A successful pullback could indicate the start of another downward phase, aiming to breach the $1.5K level.
On the other hand, if ETH fails to execute the pullback and instead surges beyond the trendline, traders may anticipate a rally towards the $1.7K resistance. It’s essential to closely monitor these price fluctuations as they will likely define Ethereum’s mid-term trajectory in relation to key support and resistance levels.
Ethereum (ETH) unexpectedly slid below $1,600, signaling capitulation according to crypto data provider Santiment. ETH is currently at $1,579.45, down 2.56%, with a 1.67% decrease in market cap. The week started with ETH falling below $1,600 after reaching $1,627.67 on Sunday. Intraday, it hit a low of $1,540. The price strength indicator is oversold at 31.67, with the next support level near 28.00. This stagnation suggests signs of capitulation, as seen in the chart, highlighting Ethereum’s uncertain trajectory amidst recent price fluctuations.
Ethereum (ETH) currently sits at $1,646.94 with a bearish outlook. In the past 24 hours, it has traded with a volume of $4,709,573,433 and boasts a market cap of $197,877,102,061, slightly up by 0.18%. Recent challenges have caused a dip in Ethereum’s price. It clings near the critical support level of $1,626, indicating persistent selling pressure from bears. A breach below this could lead to a significant drop, possibly down to $1,550, which might attract bullish interest. If it rebounds but struggles at $1,626, this could turn into resistance, potentially triggering a downward trend towards $1,368.
Monitoring whale behavior and on-chain transaction volume is crucial as it impacts price movement, especially considering the extended supply dumping by larger ETH holders over the past four months. Keep an eye on the psychological support level at $1,500 and the potential for increased volume if Ethereum approaches it.
Ethereum (ETH) Faces Selling Pressure as Price Consolidates Around $1650 Amidst Bearish Signals (27 August 2023)*
At the time of writing, Ethereum (ETH) is trading at $1,648.61 with a market cap of 1.23%, down 0.22%. Recent market dynamics have led to the breach of a key support level at $1800, initiating a downward trend. This decline has caused a breakdown of a symmetrical triangle pattern, pushing ETH to hover around the immediate support at $1650.
Despite attempts by buyers to maintain levels around $2000, resistance and selling activity have hindered their efforts. The price has fallen below the 200-day Exponential Moving Average (EMA), indicating a strong influence of sellers. The price action reveals consolidation, with smaller candlesticks suggesting buyers are trying to stabilize their positions.
Amidst considerable selling pressure, sellers’ efforts have led to a period of consolidation. Technical indicators suggest the potential for further selling, possibly driving the price towards the $1100 support zone. The current price is close to the middle trajectory, and breaching this could result in a significant drop towards the main support at $1500. Buyers are actively defending this territory to initiate a potential rebound.
ETH faced a decline from its $2000 peak, experiencing a shift in momentum that prompted more active selling and a correction. The price is hovering near $1650, indicating a possible decisive movement in upcoming sessions.
Obstacles lie near $1700 and $1750, aligned with the 200-day EMA, while the key support at $1500 awaits a potential test by buyers. The RSI curve’s bearish divergence and the MACD indicator’s mixed signals contribute to an uncertain outlook.
In summary, Ethereum’s price is consolidating around $1650 amidst selling pressure and bearish signals, as buyers struggle to regain control in a challenging market environment.
Price Prediction in Bearish Market (5 August 2023)*
When analyzing ETH’s daily price chart, it becomes evident that bearish price action has been dominating the market sentiment. The 50-day simple moving average (SMA), which had provided support around $1,900 for several weeks, was breached to the downside. This breach indicates a weakening bullish momentum, raising concerns among investors.
Now, Ethereum is eyeing the 200-day simple moving average around $1,800, as well as the key support level at $1,750, as potential targets in the coming days. The breach of these levels could trigger further selling pressure and drive the price lower. However, it is highly probable that a rebound might occur from these support levels, leading to another rally towards the $2,000 mark and potentially even higher.
Zooming into the 4-hour chart, it is evident that the price of ETH failed to sustain its position above $1,930 and is currently testing the support zone at $1,830. This support level holds significance as it may play a crucial role in determining the short-term price action. If the $1,830 level holds, there is a strong likelihood of the market rallying once again towards the $2,000 level, potentially leading to a decisive break above it.
On the other hand, if the $1,830 support level is breached, it is likely to trigger further selling pressure and drive the price lower towards the $1,750 level in the days ahead. Traders and investors should closely monitor the price movement around these critical levels to gauge the market’s sentiment.
Rida Sarwar, a seasoned journalist with a knack for the new-age financial landscape. With 5+ years under her belt, Rida has an extensive background in Crypto, Fintech, and Blockchain journalism. Her analytical skills, coupled with her passion for decrypting complex tech phenomena, make her a reliable source for insightful, well-researched narratives. Guiding the uninitiated through the maze of the digital finance world, one article at a time. 📚💻🌐🚀