Dealers watch out! Ethereum is very likely to fall all the way …

Disclaimer: The results of the following analysis are the sole opinions of the author and should not be construed as investment advice

The level above $ 3,300 has been held in response to Ethereum’s steady upward trend. A failed breakout attempt appeared to result in a fourth straight red candle on the Ethereum chart at press time. That was something that was last seen over a month ago. A few other risks existed in the form of an ascending channel breakdown and sell signals on some ETH indicators.

At the time of writing, ETH was trading at $ 3,121, down 6% over the past 24 hours.

Ethereum 12 hour chart

Source: ETH / USD, TradingView

While ETH has held its position in a steady upward trend since the end of July, the 12-hour chart showed some weaknesses. ETH has been trading within an upward channel since early August, but the lower range of $ 3,400 to $ 3,600 has yet to be cracked. The spotlight is now falling back on the lower trendline and the 50-SMA (yellow), both of which have the potential to deny a longer decline.

Unless selling pressures are kept above $ 2,900, another collapse would be in place. This would invite additional short sellers. The cut-off for medium-term bullish control would be around $ 2,700, above which the 200 SMA (green) would be in focus.

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The RSI made lower highs and identified bearish divergences in relation to ETH price action. This was an important warning sign that offered the chance of a major decline. Moving below 45-40 and into a bearish area would confirm an unfavorable result for ETH.

Lower peaks were also seen on the Awesome Oscillator – a finding suggesting that bullish momentum had worn out. This put a lot of pressure on the Directional Movement Index. The indicator struggled to spot a clear market trend as the + DI line was intertwined with the -DI line.

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Another 10% decline seemed possible for ETH if buyers didn’t respond immediately to selling pressure. To reverse a bearish projection, ETH needs to stay above the 50 SMA and avoid a closing price below $ 2,900.

If the market turns unfavorable, it is likely that ETH would dip as low as $ 2,700 before buyers offered to make a comeback. Meanwhile, the market is more risky for bullish traders and ETH short selling in the event the Alt closes below a critical price level would be a better call.

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