Ethereum Price Analysis: Bloodshed Galore As ETH Nosedives To $1,700

By John Isige
Published July 20, 2021 Updated July 20, 2021
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Ethereum Price Analysis: Bloodshed Galore As ETH Nosedives To $1,700

By John Isige
Published July 20, 2021 Updated July 20, 2021
  • Ethereum price explores the levels toward $1,700 after closing the day under support at $1,850.
  • Ether’s downtrend seems unstoppable amid numerous sell signals.

Ethereum price is joining the rest of the cryptocurrency market in another selloff round. The pioneer smart contract token is in the middle of a breakdown that may soon touch $1,700 and perhaps continue to $1,600.

The widespread losses have seen Bitcoin lose over 5% of its value in the last 24 hours to trade marginally above $30,000. Ethereum is grappling with 7.6% in losses while more declines seem apparent in the near term.

Ethereum Price Freefall Gains Momentum

Ether continues to trade within the confines of a descending parallel pattern, as seen on the four-hour chart. A recent rejection at the upper boundary (a resistance reinforced by the 50 Simple Moving Average (SMA)) caused bulls to lose balance.

The correction reported on Monday failed to secure support at $1,850 (instrumental in stopping last week’s losses). As the price action explores downstream levels, bulls hope to bounce back at the channel’s lower boundary.

Nonetheless, most indicators seem to have flipped massively bearish, accentuating the sellers’ grip on ETH. For instance, the Moving Average Convergence Divergence (MACD) recently affirmed a sell signal that occurred when the 12-day Exponential Moving Average (EMA) crossed below the 26-day EMA. In addition, the MACD is moving lower beneath the mean line, thus validating the bearish outlook.

ETH/USD four-hour chart

ETH/USD price chart
ETH/USD price chart by Tradingview

At the same time, the Relative Strength Index (RSI) emphasizes the aggressive bears’ grip. Hence, Ethereum’s path with the least resistance will remain downward in the short term, perhaps until formidable support comes up.

Holding above $1,700 is crucial for the resumption of the uptrend and will shift the bulls’ focus to $2,000. Otherwise, closing the day below may deepen the sellers’ reach, with losses gaining traction to $1,600.

Ethereum Price Intraday Levels

Spot rate: $1,732

Trend: Bearish

Volatility: High

Support: $1,700

Resistance: $1,880 and $2,000

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Disclaimer
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.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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