This Level Remains Critical For Ethereum Price Next Round Of Action; Here’s Why

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Ethereum price analysis remains sidelined and offers no excitement for investors. ETH faces strong rejection near the critical $1,600 mark as it forms a resistance zone. On digging further, the $1,600-$1,650 is a challenge for the bulls.

ETH hovers near $1,550 with mild gains amid dropping volumes. The 24-hour trading volume stands at $17.42 with more than 26% losses, implying low volatility.

  • Ethereum price trades in a minimal price range with no clear directional bias.
  • A decisive close above $1,650 would bring in more gains.
  • Neutral momentum oscillators warn of aggressive bids.

With an oversold market structure, we expect the price to move in a short-term range of $1,520-$1,650.

Ethereum price stays calm

Ethereum price analysis found that a significant support zone emerges near $1,520-$1,550 following the recent downside movement from the swing highs. Despite, the hiccups in between the price managed to stay near $1,600.

Source: Trading view

On the daily chart, ETH traded in a short-term downside channel from the swing highs of $2,029.90. This also coincides with the breach of the critical $1,640-$1,600support-turned resistance zone.

Further, the ETH/USD pair sliced below the 21-day exponential moving average at $1,650. Thus, an upside recovery can not be predicted well if the price does not give a convincing close above the mentioned level with above-average volumes.

The RSI (14) crosses the average line with a neutral bias. Currently, it reads at 43. If the additional buying emerges as in the past few sessions the bulls manage to hold the lower levels. Any uptick in the oscillator would produce further gains.

The formation of a Doji candlestick indicates indecision among traders. We expect a move toward the 20-day ema at $1,630.

Next, the buyers would meet an interesting intersection point at the 20-day ema and the bearish trend line, a major thrust beyond this point will bring wild swing moves. A roller coaster ride toward $1,850 after $1,700 could be a possibility.

Downside move in Ethereum price

if the Ethereum price failed to move toward $1,630 upside barricade, it could erase hope for any recovery. Interim support on the downside is near the $1,520 zone and next followed by the lower trend line of the channel at $1,420.

A break below $1,420 the selling would amplify as it is a sign of the fresh downside cycle.

Also read: http://Breaking: Ethereum Merge Could Happen Before September 15, Here’s Why

Ethereum started a strong recovery from the $1,000 zone after consolidating for a month from June 15 to July 13. This move brings a swing high of $2029.90 into the picture.

Technical indicators:

Daily RSI: Neutral and hovers near 42.

Major Support Level: $1,520

Major Resistance Level: $1,630

 

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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