25 May 2023 04:23, UTC
Reading time: ~2 m
Ethereum Price Analysis: In the midst of growing uncertainty within the cryptocurrency market, a short support trendline protected the Ethereum price from excessive downfall. The coin price bounced thrice from the rising trendline in the last two weeks, indicating the buyers were buying at minor dips to reclaim lost ground. However, a sudden downtick in the crypto market today increased the outflow in ETH price and breached the support trendline for an extended downfall.
Ethereum Price Daily Chart
- A bearish crossover between the 20-and-50-day EMA may increase selling momentum in the market
- A breakout above the wedge pattern resistance will signal an early sign of trend reversal
- The intraday trading volume in Ether is $5.5 Billion, indicating a 7.4% loss.
With an intraday loss of 3.35%, the Ethereum price shows a decisive breakdown from the support trendline of the 4-hour time frame chart. Losing this support accelerates the selling pressure on the ETH price and projects a significant possibility of a potential downfall.
The post-breakdown fall may plummet the coin price by 4.7% to hit the combined support of $1700 and lower trendline of the wedge pattern. A retest to the support trendline could trigger a new recovery cycle in ETH price but for a sustained bull run it needs a daily candle closing above the trendline.
A bullish breakout from the resistance trendline will offer a key signal to uptrend resumption and wait for buyers for an entry opportunity.
Will Ethereum Price Break Below $1700?
A successful breakdown below the ascending trendline has set the ETH price downfall to $1700. However, this level is accompanied by a support trendline of wedge pattern and 200-day EMA creating a strong demand zone for buyers. Thus, a higher probability lies in a potential reversal from this psychological level.
- Super trend: the trend-defining indicator projecting a red film indicates the sellers regain trend control.
- Average Directional Index: An uptick in ADX slope reflects the strength in selling pressure and a higher possibility of a potential fall.
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