Ethereum, over the last day, has been bearish. The cryptocurrency's price action almost mirrors the behavior of several other cryptocurrencies across the market after hitting some important resistance level.
For ETH, the support level is at $1,650 zone. So far, the cryptocurrency looks to be in for forming another higher low beneath the $1,600 zone.
ETH over the last day has fallen by 2.3% at the time of writing and trades at $1,579. After a 2% drop in its market cap, the cryptocurrency now has a market cap of $193.3 billion.
Over the last 24 hours, the cryptocurrency has traded between $1,569 and $1,634, indicating a mild lack of volatility. Just as its market cap has declined by 2.05% and has now slid to the $193.3 billion range, its market dominance is 18.7%
On the 4-hour chart, Ethereum crossed the $1,600 mark and reached $1,659. However, the cryptocurrency price was rejected at this zone after forming a higher high.
As it seems, Ethereum appears to be on its way to making another higher low, right above the $1,500 zone.
Over the past week, the cryptocurrency has seen its once-strong bullish momentum diminish as the bulls continue to expend their energy to push against the bears.
Around the $1,650 resistance, a double-top rejection appears to have formed, signaling possible selling pressure from the bears. Ethereum may be in for some serious bearish turbulence over the coming days as a result.
If the bears push the price action on Ethereum further downwards and the cryptocurrency manages to break the $1,500 support to the bottom, more serious selling pressure can be expected over the coming weeks, as the next support zone is around the $1,400 mark.
It becomes easy to draw a short-term ascending channel on the hourly timeframe. If the setup above plays out, the cryptocurrency price will continue further downwards until it hits the bottom of the channel around $1,544 as the next higher low.
At this point, the bulls are expected to push against the bears and cause another impulse to move to the upside, where the price of the cryptocurrency hits the top of the channel at around $1,699. And if the bulls push even harder, the price of Ethereum may break further to the upside, towards the $1,800 – $2,000 zone.
On the other hand, if the bulls cannot hold the bottom of the channel against pressure from the bears, the price of Ethereum may break the channel to the downside, and the cryptocurrency may reprise its previous lows of around $1,400.
On the daily timeframe, the Relative Strength Index of Ethereum is very close to the overbought zone, increasing the probability of further bearishness.
The MACD also appears to be on the verge of a crossover between its MACD and Signal Lines, indicating that the bears may be trying (and are probably succeeding) to take control of the market.
Overall, the indicators on Ethereum show slight bearishness, and trading or investing with caution may be advisable in such choppy circumstances.
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