ETH Consolidates Below $1,700; Is Correction Waiting?

Ethereum

Published 6 hours ago

The Ethereum price analysis shows a lackluster movement for the day. As the price continues to slide in a very narrow trading range for two consecutive sessions.  The price surged 33% since July 26 and tests the highs of $1,792 on Thursday. Since then ETH has been consolidating near the higher levels. However, as the weekend sets in the average trading volume drop adding to the ongoing sideways movement as investors are avoiding any aggressive buying activity near the resistance level.

As of publication time, ETH/USD is reading at $1,683, down 2.39% for the day. The 24-hour trading volume of the second largest cryptocurrency dropped 20% to 21,176,806,581 as per the CoinMarketCap data. The price is trading above the critical moving average crossovers indicating the strength in the current price movement. Buyers must hold $1,700 to make another leap toward $2,000 possible.

  • ETH price edges lower following the previous session’s consolidation.
  • However, the buyers are expected to remain in action as the trading volume drops with a decline in price.
  • A daily candlestick below $1,650 would be a warning sign for the bulls.

ETH price extends consolidation

Source: Trading view

On the daily time frame, ETH price analysis indicates that the price is moving inside the ascending channel. However, a corrective pullback is on the horizon, as the sellers emerge near the higher levels.

The price tested the lower trend line of the channel on July 13 and 26 at $1,005.5 and $1,356.30 respectively. Currently, the price is hovering near the support-turned-resistance level at around $1,680. Thus, making it a crucial level to trade.

A break below $1,680 on a daily closing basis would accelerate the selling towards the lows of Thursday at $1,590. It will sour the market mood if it happens. Further, it could drop to the lower trendline of the bullish channel at $1,453.

On the other hand, sustained buying pressure would push back toward the $1,700 threshold. In that case, the price could test the highs of the June 7 high of $1,872 followed by the $2,000 level.

The daily RSI is holding near 59 and is about to drop below the average line. Any downtick would strengthen the bearish outlook.

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

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.

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Source: https://coingape.com/markets/ethereum-price-analysis-eth-consolidates-below-1700-is-correction-waiting/