Published 5 mins ago
The ETH price has witnessed an aggressive sell-off approaching the weekend, losing 15% in the last two days. As a result, the falling price has breached crucial yearly support of $1715-1675, suggesting another leg down for the altcoin. Moreover, the @BXrekt today tweeted regarding a massive long liquidation of $3,908,000 on ETH/USDT at an average price of $1539.95.
Key points:
- The ETH price nosedive below the $1715-1675 crucial support
- The weekly-RSI slope entering the oversold territory
- The intraday trading volume in the Ethereum is $21.5 Billion, indicating a 42.5% gain
Source- Tradingview
The ten consecutive red candles on the weekly time frame chart reflect the aggressive selling Ether price has witnessed during the past two months. From the April 3rd high of $3573, the altcoin has tumbled 57.5% as it reached its current level of $1504.
However, since mid-May, the downfall is responding to a descending trendline, restricting the buyer’s activity to a certain limit. Additionally, on June 10th, the ETH price breached yearly support of $1715-1675, indicating the continuation of the prevailing downtrend.
Today, the ETH price is down by 9.5%, offering an excellent follow-up for the support breakdown. However, in case the altcoin reverts to retest the descending trendline and flipped resistance of $1675, the traders may find another entry opportunity to short-sell the coin.
The expected downfall should find the next significant support levels at $1400 and the aligned support of $1100 and 0.786 Fibonacci retracement levels.
Technical indicator-
The current price drop plunged below the weekly 200 EMA, threatening a loss of important support level for ETH holders. Furthermore, a weekly closing below this EMA would encourage additional selling in the market.
However, the weekly-RSI slope is on the verge of dropping into the oversold region, indicating the sellers might have extended the downtrend. Thus, responding to this overselling, the altcoin may experience a minor pullback
- Resistance levels- $1900 and $2170
- Support levels- $1400 and $1100
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/how-low-can-eth-price-drop-from-here/