Bull Trap Puts Ethereum Price at 7% Downside Risk

Ethereum Price Prediction: On April 13th, the Ethereum coin price gave a bullish breakout from the crucial psychological resistance of $2000. This breached level was supposed to bolster buyers for further recovery but the broader market sell-off plunged the price back below the $2000 mark again. On April 19th, a massive outflow in ETH price formed a massive daily red candle which may have forced liquidated aggressive buyers with narrow stop loss, fueling more selling pressure in the market.

Key Points: 

• The ongoing correction phase in Ethereum price may face significant demand pressure at $1780
• The daily EMAs(50, 100, and 200) may offer dynamic support to resume a bullish recovery
• The intraday trading volume in Ether is $11.4 Billion, indicating a 2.74% loss.

Source- Tradingview

Amid the increasing selling pressure in the market, the Ethereum price has witnessed a 9% drop in the last three days and plunged to the current price of $1913. With this downfall, the coin holders lost the 23.6% Fibonacci retracement and a support trendline maintaining sustained recovery in ETH price for the last four weeks. 

Thus, a breakdown below the dynamic support will likely accelerate selling pressure in the market and tumble the Ethereum price more 7-8% down to hit the combined support of $1780 and 50% FIB level.

Also Read: 15 New Cryptocurrencies To Buy In 2023e

This high area of interest may assist buyers in sustaining the higher levels of the chart and resuming the prior recovery. Thus, the $1780 is a key level to watch in the coming weeks.

While overall the price trend remains bullish a breakdown below $1780 will gradually weaken the buyers’ grip over the Ethereum price.

Technical Indicator

Moving Average Convergence Divergence: A sell signal from the bearish crossover between the MACD(blue) and the signal(orange) line hints at prolonged correction in ETH price.

Exponential Moving Average: Along with the ascending support trendline, the Ethereum price breached below the 20-day EMA offering an additional edge in the short-seller’s favor.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1915
• Trend: Bearish
• Volatility: Low
• Resistance level- $2000 and $2140
• Support level- $1850 and $1780