Ethereum price was trading laterally between the $1,700 and $1,600 price mark. At the moment Ethereum was standing firm on the $1400 support line. Over the last 24 hours, Ethereum price depreciated over 4%.
Bearishness started to prevail on ETH’s chart and technical outlook pointed towards the same direction. For the bulls to resurface Ethereum price needs to climb above the $1,745 price ceiling.
Incase ETH manages to break past the $1,745 price mark and remains above that level, chance of revisiting $2,000 aren’t bleak.
Buyers exited the market as the coin met with a sell-off on its four-hour chart. Ethereum price might trade near the $1,300 price mark in case sellers take over the market.
Over the past week, Ethereum noted positive price action however, the bulls were unable to hold onto the momentum. Ethereum price is also likely to be affected considerably by the Ethereum merge that is due in the month of September.
In this software upgrade, the token will move from a Proof-of-stake (PoS) consensus to Proof-of-work (PoW) consensus. This would render mining useless because validators will be in charge of securing the new network.
Ethereum Price Analysis: Four Hour Chart
ETH was trading at $1,590 on the four hour chart. Currently the coin has managed to stay afloat over the $1,500 support line. Incase the number of sellers start to overpower the buyers, Ethereum price could soon fall to $1,300 on its chart.
Over the last week the coin has been moving up and down between the $1,700 and $1,600 price levels respectively. Immediate price resistance for the coin was at $1,745 and for bulls to be back, it is vital ETH moves above that level.
Local support for the coin was at $1,471 and a push by bears could make Ethereum price trade as low as $1,300. The amount of Ethereum traded remained low highlighting bearishness as sellers returned on the chart.
Technical Analysis
The altcoin captured the effects of a sell-off as the indicators point towards negative price action. The Relative Strength Index was situated below the half-line as sellers took over the market.
Continued selling pressure will cause Ethereum to further lose considerable value. Ethereum price was below the 20-SMA line, this reading was considered bearish.
It meant that sellers were driving the price momentum in the market.
ETH’s other indicators were in agreement with the fall in buying pressure. As Ethereum price extended losses, the coin continued to depict sell signal on its chart. Moving Average Convergence Divergence depicts the price direction and change in the same.
MACD underwent bearish crossover and that gave rise to red histograms which are tied to a sell signal for the coin. Parabolic SAR identifies the current trend in the market, the reading suggested that there was a downtrend as the indicator’s dotted lines were above the candlestick.
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Featured image from UnSplash, chart from TradingView.com