The Ethereum price is currently trending lower and is approaching a significant support level. In the last 24 hours, there has been little movement on the chart, while on the weekly chart, ETH has seen a depreciation of more than 3%.
This downward trend in Ethereum is consistent with the volatile behavior of Bitcoin, which has been bouncing back and forth around the $26,000 price mark. Other altcoins have also shown similar patterns and Ethereum technical analysis indicates bearish influence.
Both demand and accumulation levels on the chart have remained low. Therefore, it is crucial for Ethereum to move away from the $1,700 support line to avoid further bearish pressure. If the price falls below this level, it may be challenging for Ethereum to recover.
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Furthermore, for Ethereum to start a recovery, Bitcoin must stop its sharp pullback on its own chart. The decline in Ethereum’s market cap also suggests that sellers currently have the upper hand in the market.
Ethereum price analysis: one day chart
At the time of writing, ETH was trading at $1,750. Following a rejection at the $1,840 price level, ETH has been experiencing a downtrend with failed recovery attempts. The coin is facing resistance above $1,770.
If Ethereum manages to break above this resistance level, it can receive support from the bulls and potentially reach $1800. Conversely, if the sellers apply more pressure, Ethereum could drop below its nearest support level at $1,700.
A drop below this level would likely lead to a price of around $1,660 for ETH. The volume of ETH traded in the last session was indicated in the red, suggesting a low buying force in the market.
Technical analysis
Since the beginning of June, ETH has experienced a noticeable decline in demand, which has coincided with increased market volatility.
As a result, buyer confidence has declined. The Relative Strength Index (RSI) indicates that the market is oversold as it is below the midline and the 40 mark.
Furthermore, the price of ETH has fallen below the 20 SMA, which suggests low demand and indicates that the sellers are currently driving price momentum in the market.
However, if ETH can break above the $1,770 level, there is a chance that the demand will return. Breaking above this resistance level could attract buyers and potentially lead to an increase in demand for Ethereum.
In addition to the indicators mentioned above, other technical indicators on the altcoin chart suggest sell signals. The moving average convergence divergence (MACD), which measures price momentum and possible reversals, has formed red signal bars and these bars are associated with sell signals for the altcoin.
Bollinger Bands, which represent volatility and price fluctuation, have started to diverge. This suggests that the altcoin’s price may experience larger fluctuations in the upcoming trading sessions. Given this, it is crucial for ETH to hold the $1,700 support or risk a quick drop.
Featured Image from Unsplash, Charts from TradingView.com
