NEWSLETTER
At the time of writing, the ETH trading price was $1790. Despite trying to trade within the $1800 price range, the altcoin encountered selling pressure, resulting in its depreciation. The current upper resistance for Ethereum is at $1810. If the altcoin breaches this resistance level, it has the potential to trigger a rally in its price.
On the other hand, if the current price level sees a decline, Ethereum is likely to decline further to $1,750 before finally reaching the $1,700 price mark. The recent session saw a decline in Ethereum traded volume, indicated by the color red, indicating a weak buying force.
Technical analysis
Throughout this month, Ethereum experienced a decline in demand, resulting in a reduced buying force. The Relative Strength Index (RSI) fell below the midpoint line, suggesting declining demand and increasing selling pressure on the chart.
Furthermore, the price of Ethereum dipped below the 20 simple moving average (SMA), indicating that the sellers were dominating the market price momentum.
With Bitcoin’s price movement remaining uncertain, several altcoins, including Ethereum, have followed a similar price trajectory. However, if Ethereum gains broader market strength, there is a chance that demand will return, sending ETH breaking above the 20-SMA line and potentially higher.
Due to the lack of demand, ETH did not show significant buy signals. The Moving Average Convergence/Divergence (MACD), a tool used to indicate price momentum and possible trend reversals, showed small green histograms that do not provide conclusive buy signals at this time.
Bollinger Bands, which measure price volatility and possible fluctuations, have maintained a parallel shape. However, they did show a slight convergence, suggesting that ETH can trade within a relatively stable range without substantial price fluctuations.
In order to recapture the $1800 price level, it is crucial that buyers re-enter the market at the current price level. Your participation is essential for Ethereum to regain strength and potentially push the price up.
Featured Image from UnSplash, Charts from TradingView.com
