Amid Widespread Sell-off, ETH Bears May Breach $1600 support

0
23

Published 22 mins ago

The Ethereum (ETH) price lost 0.236 Fibonacci retracement support with today’s price drop, indicating a minor correction. This breakdown increases the chances for the price to retest the $0.382 FIB level at $1600. However, a drop below the 0.382 FIB level will trigger a significant correction, and losing 0.5 FIB will reflect weakness in bullish momentum.

Key points from ETH analysis: 

  • The daily-RSI slope nosedive below the neutral line
  • The bearish crossover of the 20 and 100-day EMA will bolster the ongoing correction
  • The intraday trading volume in Ethereum is $22.7 Billion, indicating a 42% gain

ETH/USDT ChartSource-  Tradingview

Over the last month, ETH/USDT market value nearly doubled, outpacing Bitcoin’s gain. The altcoin’s north walk showed a steady breakout of higher resistance and formed a local top at $2000 psychological resistance.

Furthermore, on August 14th, the ETH price reverted from the $2000 resistance with an evening star pattern and triggered an occasional bull trend pullback. However, recent news that the US Fed may increase the interest rate by 0.75% ignites a sudden sell-off in the market.

As a result, the ETH price dropped 8% today and nosedive below the combined support of $1775, 20 EMA, and 100 EMA. Furthermore, a decisive breakdown from the mentioned support with increased volume activity indicates the current correction may extend longer.

Thus, a daily candlestick closing below the $1775 mark will flip this level into potential resistance. An expected retest may offer an entry opportunity for short sellers before the prices drop another 6.5% to retest the $0.382 Fibonacci retracement level at $1600.

If the selling pressure persists, the ETH price will breach this mentioned level and drop a 10% to hit the 50% retracement level.

Technical indicator-

EMAs: the 20-day EMA provided dynamic support to the ongoing recovery rally. However, a breakdown from this support bolsters the correction theory.

RSI: the daily-RSI slope dropped from the overbought region to bearish territory within a week, indicating a sudden and unhealthy shift in market sentiment. Thus, it means the market may remain uncertain for a few sessions, accepting or rejecting the recent drop.

  • Resistance level- $1780, and $2000
  • Support level- $1600 and $1420

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.

Close Story

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here