Ethereum price consolidation weakened as the bulls lost momentum, resulting in a nearly 4% loss in the last 24 hours and a 7% drop on the weekly chart. Technical analysis indicates considerable bearish pressure.
The value of the coin remained stuck at around $1,800, leading to declining interest from buyers and a significant decline in demand and accumulation. As Bitcoin fell below $26,000, the major altcoins also saw significant drops on their daily charts.
To break its resistance, Ethereum requires substantial buyer involvement, as failure to do so could result in the loss of a crucial support level.
Furthermore, Bitcoin needs to recover and reach the $27,000 zone to start a short-term recovery of ETH. The decline in Ethereum’s market cap suggests a gradual exit of buyers from the market.
Ethereum price analysis: one day chart
At the time of writing, ETH was priced at $1,770. After struggling around the $1,800 range, the selling pressure finally took over. Resistance levels for the coin were identified at $1,798 and $1,821. Conversely, if the price continues to decline, the bulls will try to defend ETH at $1,740.
However, if it does not hold above $1,740, Ethereum would drop to $1,690. A further drop would break the support line of $1,540. Furthermore, the recent session saw a significant increase in the selling force, reflected in the red volume of Ethereum traded.
Technical analysis
Following the fall from the $1800 range, ETH has experienced a significant sell-off with a lack of recovery in buying force. The Relative Strength Index (RSI) dipped below 40, suggesting a decline in accumulation and approaching oversold territory.
Additionally, ETH dipped below the 20 simple moving average (SMA) line, indicating that the sellers have been driving market momentum. If ETH successfully breaks through the immediate resistance level, there is a chance to move above the 20-SMA line.
Various technical indicators on the Ethereum daily chart began to show sell signals. One of these indicators is the Awesome Oscillator, which not only reflects price momentum, but also identifies potential trend reversals.
In this case, the indicator showed increasing red histograms below the midline, indicating sell signals for the altcoin. This suggests a possible fall in price before a recovery occurs.
Another indicator, Bollinger Bands, which reveal price fluctuation and volatility, began to widen. This widening suggests that Ethereum could experience increased price volatility and fluctuations in the upcoming trading sessions.
This increased volatility indicates the potential for significant price moves in either direction. Ethereum has to break down its immediate resistance to stop the bears. On top of that, the strength of the broader market will also prove crucial for ETH.
Featured Image from UnSplash, Charts from TradingView.com
