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The Ethereum price breakdown from monthly support of $1827 indicates this altcoin is poised for a longer correction. However, the falling price witnessed significant demand pressure near the 100-day EMA at $1766, indicating the buyers have not thrown the towel yet. Thus, in the coming week, the coin holder may witness a brawl between the buyers and sellers to claim trend control.
Key Points:
- A downsloping resistance carries the ongoing correction phase in the Ethereum price
- A breakdown below $1827 has set a potential fall of 12% to reach the $1600 mark.
- The intraday trading volume in Ether is $4.39 Billion, indicating a 49% loss.
Source- Tradingview
After giving a decisive breakout from the $1827 support of May 11th, the sellers failed to offer a significant follow-up indicating a weakness in bearish momentum. Today, the Ethereum price trades at $1803 with an intraday gain of 0.42% and continues to hover between the $1827 level and the 100-day EMA slope.
If the buying pressure persists, the Ethereum price may retest the breached support as potential resistance. If the sellers sustain below the $1827 level, the correction phase will prolong 11.5% and retest the combined support of $1600 and a long coming support trendline.
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The Ethereum price has rebounded from this support four times indicating the buyers are accumulating this asset at pullbacks which is a sign of an established uptrend.
Conversely, if the ETH price surged above the $1827 barrier, the bearish momentum would weaken, but the traders would receive sufficient confirmation for recovery once the price breached the overhead trendline.
Technical Indicator
Relative Strength Index: A clear bearish divergence between the price and RSI slope peak of mid-January and mid-April reflecting underlying weakness in bullish momentum. Thus, the Ethereum price is likely to witness a prolonged correction to 1600.
Exponential Moving Average: A potential bearish crossover between the 20-and-50 EMAs will encourage selling pressure in the market.
Ethereum Coin Price Intraday Levels-
- Spot rate: $1767
- Trend: Bearish
- Volatility: Medium
- Resistance level- $1830 and $1920
- Support level- $1700 and $1600
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/buyers-losing-support-hints-ethereum-price-at-12-downside-risk-for-coming-week/