Published 43 mins ago
Ethereum (ETH) price analysis shows an extended consolidation. ETH tested one month low below $1,500 on Saturday. The price is trading in red for the past few hours.
As of publication time, ETH/USD is trading at $1,503.67, down 0.31% for the day. The second largest cryptocurrency by the market cap holds the 24-hour trading volume with more than 40% gains at $25.21 billion.
- Ethereum price trades lower extending the previous session’s loss.
- A decisive break below $1,500 would bring more losses to the coin.
- This bearish formation on the weekly chart favors bears.
Ethereum price is in limbo
ETH price closed above $2000 for the first time since March 29, 2021, and since then the price had made a high of $4,867. However, the price broke the support of more than one year of $2000 on May 22, 2022, & tested the all-time low of $898.
Finally, the price tested the $2000 level again in the previous week, but couldn’t sustain above the level as it faces heavy resistance, which was once acting as a support.
Further, ETH faces pressure near the 20-day exponential moving average. Along with a 38.6% Fibonacci retracement, which will act as immediate resistance for this week.
A bearish engulfing pattern on the weekly chart favors the bearishness. A bearish engulfing pattern produces the strongest signal when it appears at the tip of an uptrend. During this pattern, the red candle engulfs the previous (smaller) green candle & appears at the highest of an uptrend.
Since bearish engulfing candles can indicate the start of a chronic downtrend, it’s helpful to contemplate an initial take profit level while remaining hospitable to further downward movement. Adjust stops accordingly or think about employing a trailing stop.
On the daily chart, the Ethereum price has given a breakdown of a “Rising Wedge” pattern on August 18, indicating weakness around the overall look. After making lower highs and lower lows, ETH even slipped below the 50-day exponential moving average in the previous session.
In addition, a breakdown of a “Head & Shoulder” pattern, with rising volumes compared to previous average volumes hints at more weakness in the coin. The neckline of support is at $1,565. If the price sustains below this given level, then there is a higher chance of ETH moving toward $1,400.
The RSI (14) is trading below 50. Another momentum oscillator, the MACD line crosses below the signal line below zero, indicating a bearish trend.
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The nearest support is $1,477, whereas the nearest resistance is $1,575. There is a higher probability of the price to breaks its support level. “Sell on rising” opportunity is the best course of plan we can go with.
On the other hand, a weekly move above the $1,575 level could invalidate the bearish outlook. And the price can be higher than $1,700.
ETH is bearish on all time frames. Below $1,477 closing on the hourly time frame, we can put a trade on the sell side.
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/ethereum-eth-fell-25-from-swing-high-is-correction-over/