Bearish RSI Hints More Correction; Are You Holding?

Ethereum price analysis imprints a negative view for the day. The price sees a steady decline from the swing highs of $2,000 over the past four-session. It might be a much-anticipated correction or a trend reversal.

The current market structure favors the bearish sentiment. As of publication time, ETH/USD is exchanging hands at $1,830, down 2.46% for the day. The 24-hour trading volume rose more than 16% to $19.31 billion. A fall in price with a rise in volume is a bearish sign.

• Ethereum price extends the decline for the fourth consecutive session.
• The price took a shelter near the critical support zone of $1,850.
• A daily candlestick above $1,900 would favor the bulls.

Ethereum price consolidates

On the daily time scale, the Ethereum price analysis indicates a neutral to negative bias.

 ETH  gave a breakout of the” Cup & Handle”  pattern on August 8 and started to move up from $1,730 to $2,030.  The volumes are below the average line and declining, with the price moving upwards, which implies a cautious tone. When the market is rising while volume is declining, the big players missing from the market, more likely slowly exiting positions.

Over the last few sessions, we are seeing rejection candles near the higher level, breaking previous days’ low on the daily basis. If that continues to happen, we can expect a sharp big bearish candle in the coming days. 

On the weekly charts, the price faces resistance at the 20-day Exponential Moving Average (EMA). Along with a 38.6% Fibonacci retracement, which will act as immediate resistance for this week.

If the price closes above recent highs of $2,032, then we can expect a good bullish momentum, otherwise, the market will slowly go down. 

The nearest support for ETH could be found in the $1720 to $1750 zone. This is also a 20-Day EMA support level on the daily chart. 

ETH on one hour chart is forming a “Head & Shoulder ” pattern. The neckline is at $1,865. If that level broke and gave a closing below this level on an hourly time frame, then we can expect a good fall of up to $1,750. 

Also read: http://Ethereum Miners To Freeze Liquidity Pool After Hardfork, Here’s Why

On the other hand, a shift in the bullish sentiment could induce fresh buying interest in the second largest cryptocurrency. In that case, a move above the $2,000  level could invalidate the bearish outlook. And the price can be higher than $2100.

ETH is coming in a corrective or retracement phase on all time frames. Below $1,865  closing on the hourly time frame, we can put a trade on the sell side.