Consolidates Below $1,600; Is Time To Accumulate?


Published 10 mins ago

Ethereum price analysis portrays a negative trend for the day. The price responded to the shift in the market structure and is currently favoring the bears.

  • Ethereum price trades with substantial losses on the first trading day of the week.
  • The price could test the liquidity resting below $1,450 amid sustained selling pressure.
  • However, a daily close above $1,620 could lead to a recovery rally in ETH.

Ethereum price looks for consolidation

Source: Trading view

Ethereum price analysis on the daily chart shows a downside pattern.

ETH produces a breakdown of the  “Rising Wedge” pattern, indicating weakness around the overall look.  The price was not able to break its previous swing high and is taking support near the 50-day exponential moving average. More downside, if breaches the moving average.

The volumes are below the average line and declining, with the price moving upwards, which implies a worrisome. When the market is rising while volume is declining, big money is not the one buying, more likely slowly exiting positions.

If the price breaks below the support level ($1,528), then we can expect a good downside momentum of up to $1,350.

Source: Trading view

On the weekly charts, the ETH price closed above $2000 for the first time On March 29, 2021, and since then the price had made a high of $4867.

But, on May 22, 2022, the price broke the support of more than one-and-half years of $2,000, & started to fall from there up to $898, the fresh all-time low.

In the previous week, the price finally tested the $2000 level again, but the bulls could not sustain the gains, facing heavy resistance which was once acting as a support.

The price is taking resistance to the 20-day Exponential Moving Average (EMA). Along with a 38.6% Fibonacci retracement, which will act as immediate resistance for this week.

On the weekly basis, a bearish engulfing candlestick indicates the presence of sellers at the higher levels. A slippage below the $1,520 critical level would be a blessing for the bears. In that scenario, the price could find the lower targets near $1,340.

Also read: http://ETH Staking Accelerates Ahead of The Merge, Will It Help ETH Recover?

On the other hand, a resurgence of discount buying could push the price toward the $1,760  level which could invalidate the bearish outlook. And the price can be higher than $2,000 in the short term.

ETH is bearish on all time frames. Below $1,520  closing on the hourly time frame, we can put a trade on the sell side.

As of publication time, ETH/USD is exchanging hands at $1,578, down 2.45% for the day. The 24-hour trading volume is held at $18,589,056,100  with a loss of less than 1%. This indicates lower volatility over the last 24 hours.

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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