Range Breakdown Signals Longer Correction For ETH

Ethereum Price Prediction: The Ethereum(ETH) price consolidated between the $1300 and $1238 levels for nearly a week. However, the sellers benefited from the current market uncertainty and breached the lower support. This range breakdown releases the bearish momentum and triggers a longer price correction.

Key points: 

• A bearish reversal from the $1300 resistance may trigger a sideways trend in Ethereum
• The RSI indicator, which accentuates the speed and magnitude of the asset’s recent price, has entered the bearish territory.
• The intraday trading volume in Ether is $6.1 Billion, indicating a 21% gain

Source- Tradingview

The recent recovery in the crypto market pushed the Ethereum price to a high of $1300. Hitting the psychological resistance, the altcoin triggered a minor pullback and retested the flipped support of $1238.

While the market sentiment remained uncertain, the ETH price continued to wobble between these aforementioned levels and created a narrow range. However, today, the long bearish candle accounted for a 3.35% loss and breached the $1238 support.

The bearish fallout indicates the sellers’ attempt to regain the trend and undermine the recent recovery gains.  Furthermore, the Ethereum price currently trades at $1229 and should offer a daily candle closing to confirm this support breakdown.

This development will accelerate the bearish momentum and plunge the prices 6% down to hit $1160 support.

Global In/Out of the Money metric

Source- intotheblock

Concerning the current Ethereum price, the Global In/Out of the Money (GIOM) on-chain metric indicates that 48.28% of ETH addresses are in the money and realize profits, whereas 46.75% are out of the money address witnessing losses.

However, the aforementioned levels are quite close to being considered as neutral market sentiment,

The nearest green cluster with a mean value of $1016 indicates an area of accumulation; meanwhile, the red cluster with $1362 accentuates a strong resistance.

Technical Indicator

MACD: the MACD and signal lines narrowing reflect the bullish momentum is losing steam. Moreover, a possible bearish crossover between these slopes offers a sell signal

EMAs: the Ethereum price loses the 20-day support with the recent price drop, offering an additional confirmation for sellers to lead the prices lower.

Ethereum Coin Price Intraday Levels

• Spot rate: $1229
• Trend: Bearish  
• Volatility: Medium
• Resistance level- $1300  and $1420
• Support level- $1160 and $1100