A 20% Fall On The Cards Below $1,680; Time To Exit?

Ethereum merge

Published 12 hours ago

Ethereum price analysis remained bearish for the session. The opening session was optimistic but the bulls could not sustain the gains at higher levels and failed to the previous session’s gains. At first look, it seems the price lost its steam at $1,800.

But on the daily chart, the price is taking support near the bullish trendline, making bulls hopeful. However, it would be a difficult task for ETH buyers to maintain the upside momentum.

To be in-game the ETH buyers must hold the critical support of around $1,670 on a daily closing basis.

  • Ethereum price trades lower with substantial losses.
  • The upside is capped near $1,800.
  • More downside, if breaks below $1,680 on the daily basis.

As of writing, ETH/USD is exchanging hands at $1,689, down 5.78% for the day. The 24-hour trading volume for the second largest cryptocurrency is standing at $16,660,453,241 with a gain of more than 7%.

ETH price makes a lower move

Source: Trading view

Ethereum price analysis shows a probable downtrend as the price remains at the edge of the critical trend line. The current market structure favors bears. However, there is a twist in the story.

On the daily chart, the ETH price refreshes a two-month high above $1,800 in the previous trading session. The bulls immediately retrace lower after making the remarkable move. This was very much anticipated as the bulls are scaling up from the lows of $1005.25 since July 13.

The price appreciated nearly 81%. Further, for the first time price breached the 20-day and 50-day EMA crossover since April. ETH bulls managed to flip the $1,800 support level to resistance.

The bearish RSI divergence hints at a probable impending downside momentum. The oscillators slipped below the average line. It reads at 57.

Also read: https://coingape.com/eth-whale-adds-312-billion-shiba-inu-tokens-amid-price-dip/

A break below the ascending trendline could drag the price lower toward the 20-day EMA at $1,589 followed by the low of July 27 at $1,420.

On the other hand, a daily candlestick above $1,690 could mean a shift in the bearish sentiment. In that case, the bulls would aim for the highs of June 6 at $1,918.47.

Source: Trading view

On the 4-hour time frame, the ETH price respects the ascending trend line as it holds the $1,692 mark.  The price is making higher highs and higher lows, a classic bullish trend.

It is crucial for the bulls to sustain the $1,690-$1,700 support zone.  A renewed buying pressure could push toward the psychological $1,800 level.

On the contrary, the ETH/USD pair remained pressured below the exponential moving averages.

The RSI is trading at 42, below the average line. Any downtick in the indicator could initiate another round of profit booking.

In that case, the market participant would seek $1,580.

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-a-20-fall-on-the-cards-below-1680-time-to-exit/