Ethereum price has dipped below $1,900, falling from the $2,000 mark previously held by bulls. This has led to another selloff and the bearish influence remains strong despite recovery attempts.
In the last 24 hours, Ethereum is up just 1.2%, but on the weekly chart, the altcoin has seen a significant drop of more than 10%. The technical outlook for Ethereum is also in favor of the bears, as altcoin demand and accumulation have declined. For Ethereum to rally, it is crucial that it break through the immediate resistance force of buyers.
Despite this, most altcoins, including Ethereum, have remained bullish on the higher time frame structure. However, the bulls need to defend the next support line or supply zone for Ethereum to start its recovery.
With Bitcoin struggling below the $30,000 price mark, many altcoins are also experiencing difficulty breaking through their immediate price ceilings. On the one-day chart, the decline in Ethereum’s market cap indicates a decline in buyers.
Ethereum price analysis: one day chart
At the time of writing, ETH was valued at $1,880, having fallen below its bearish block that ranged from $1,900 to $2,000. This drop in price is likely due to a routine price pullback, as Ethereum had traded above the $2,025 price mark after about eight months. However, as selling pressure mounted, the bears took control.
The immediate upper resistance for the altcoin is at $1,910. A move above this level could potentially push ETH to touch $1,950, which may help facilitate a price rally. Conversely, support levels for ETH are currently at $1,840 and $1,820.
During the previous session, the amount of ETH traded was in the red, indicating an increase in selling pressure.
Technical analysis
As the demand for ETH declined, buyers also began to lose confidence in the asset. The Relative Strength Index showed that sellers outnumbered buyers on the one-day chart as it settled just below the 50 mark.
Additionally, ETH dipped below the 20 SMA line, indicating that the sellers were in control and driving price momentum in the market. However, with a slight increase in demand, ETH has the potential to trade above the 20-SMA line once again.
In line with other technical indicators, ETH began to show sell signals on the one-day chart. The moving average convergence divergence, which measures price momentum and reversals, formed red histograms. This reading corresponds to sell signals for the altcoin.
Also, the Bollinger Bands, which measure price volatility, were relatively far apart, but have started to slightly converge. He suggested that ETH may trade within a specific price range in the upcoming trading sessions.
Featured Image from UnSplash, Charts from TradingView.com
