Low Volume Pullback Hints At A Downfall To $1600 

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ETH slumped to 14-mth lows last week

Published 5 hours ago

While Bitcoin falls back under the $30K mark, Ether market price loses the $1800 mark and becomes closer to the $1700 support level. Moreover, the ETH price action shows a high likelihood of bearish fallout that may drown the market value under $1700. 

Key points: 

  • The ETH chart shows a downtrend under the influence of a resistance trendline.
  • The $1700 support fallout would slump ETH price to $1600 support
  • The intraday trading volume in the Ethereum is $9.93 Billion, indicating a 40% loss

ETH/USD Chart

Source- ETH/USD chart by Tradingview

The Ethereum(ETH) market price has been falling as the selling spree continues after the $2800 support level breakdown. The selling pressure increased exponentially in April and took a step back in May as buyers struggled to sustain a market value above $2000.

However, the ETH sellers managed to crack $2000 to test $1700 but failed to sustain as a sharp V-shaped reversal retested the broken $2000 level. The post-retest deterioration increased selling pressure which brought the market value back under $1800 and warned of the fallout of $1700.

The recent rejection from the resistance trendline showcases increased selling pressure and might break under $1700 to test the next support at $1575.

On the opposite end, a bullish reversal can lead ETH prices to another bullish attempt of trendline breakout close to $1900.

Technical indicator-

The DI lines delay bullish crossover as the ETH supply dump leads to a lateral shift. This projects a high likelihood of increased bearish spread. Moreover, the ADX indicator shows a fall in trend momentum as a top rounding reversal.

The 20-day(yellow) EMA trends below the 50-day(red) EMA display a bearish alignment and provide resistance to bullish growth. 

  • Resistance level- $1900, and $1925
  • Support level- $1700 and $1575

 

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.

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