Ethereum price is currently experiencing a notable drop, with a drop of more than 4%, and a similar trend can be seen in Bitcoin price. After a significant uptrend for a few days, both assets appear to have fallen into a bearish trap. And so a significant move is the order of the day to sustain an uptrend. Otherwise, the BTC price and the ETH price could find it difficult to drop to barely expected levels.
Ethereum price should keep above $ 2400
ETH price after forming a diamond top collapsed and plummeted below USD 2,500 with the start of fresh daily trading. Additionally, the price had formed a huge “W-shaped” pattern on the 4-hour chart but failed to break the neckline. Instead, the price collapsed and passed the profits on. The ongoing downtrend could also attract lower levels near $ 2300.
The price chart shows a death cross executed as the 200-day and 50-day MAs intersect, leading to today’s slump. However, selling pressures appear to have eased as trading volume is reduced. And so another climb could be on the way very soon.
The price should break the downtrend and begin a subsequent uptrend, otherwise a revisit around USD 2000 could be imminent. A popular analyst, Micheal de van Poppe, predicts that the zones between $ 2325 and $ 2180 could quickly approach if the price can’t hold above $ 2540. However, the successful launch of the upcoming London hard fork could turn the market upside down.
Bitcoin price at important levels
Bitcoin price suffered another rejection at $ 40,000 and slipped below $ 39,000. The asset has seen a consecutive upward trend for more than 10 days, rising to over $ 42,000. Unfortunately, many traders used the Bitcoin pump as exit liquidity as it posted nearly 2 billion in profits, according to Glassnode.
After multiple rejections, the price appears to have stayed between $ 30,000 and $ 40,000 over the past few months. However, $ 36,000 seems to matter most as these levels have been both support and resistance at various points. The price tries hard to keep above $ 39,000 and if sales accelerate then $ 36,000 is the level to be held. Otherwise, the price could hit the lower support levels again.
Overall, the coming days could be decisive for the price of Bitcoin and Ethereum as a reversal of the bearish divergence could pave the way for a significant uptrend. In addition, the highly anticipated upgrade of the Ethereum network EIP 1559 could have a major impact on the ETH price. On the other hand, BTC price seems to be gaining huge bullish sentiment. As a result, both assets could see a significant uptrend in the coming week.