Ethereum Price Prediction: The Ethereum(ETH) price falling for three consecutive days threatens the reliability of the recent recovery rally. This downfall registered 8.25% and plunged the price below the $1237-$1222 support. Will this breakdown replenish the selling pressure and plunge ETH below the $1100 mark?
Key points:
- With the ongoing downfall, the Ethereum price breaks the combined support of $1300 and an ascending trendline.
- The daily-RSI slope reentering the bearish increases the likelihood of a deeper downfall.
- The intraday trading volume in Ether is $7.3 Billion, indicating a 10% loss.
Source- Tradingview
Amid the last recovery cycle in the crypto market, the Ethereum price breached a monthly resistance of $1300. However, the buyers were unable to sustain higher prices which led to an immediate breakdown from the mentioned resistance and a support trendline.
This fake breakout scenario of $1300 resistance must have trapped several long traders who believed the prices would rise from $1300. Thus, this ongoing downfall may cause long traders hit their stop loss, and the forced liquidation will increase the selling orders in the market.
Today, the Ethereum coin price trades at $1200, and with an intraday loss of 4.57%, it gave a massive breakout from local support of $1237-$1222. A daily closing below this support will confirm this breakdown and encourage sellers to pull prices lower.
The potential downfall may plummet this altcoin 10.3% down to hit the $1100-$1080 support zone.
However, the in-between support of $1160 and the $1100-$1080 stand as significant support where buyers may try to wrest trend control.
Technical Indicator
Relative Strenght index: the RSI indicator, which measures the speed and magnitude of coins’ recent price action, shows a bearish outlook for Ethereum. Moreover, the RSI slope plunged below the midline and 20 SMA line, accentuating the weakness in bullish momentum.
EMAs: the coin sellers get additional confirmation as prices lose 20-and-50-day EMA support.
Ethereum Coin Price Intraday Levels-
- Spot rate: $1205
- Trend: Bearish
- Volatility: Low
- Resistance level- $1236 and $1300
- Support level- $1160 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/ethereum-price-prediction-losing-this-crucial-support-eth-poised-for-10-drop/