MEXCAmid Widespread Sell-off, ETH Bears May Breach $1600 support
The Ethereum (ETH) price lost 0.236 Fibonacci retracement support with today’s price drop, indicating a minor correction. This breakdown increases the chances for the price to retest the $0.382 FIB level at $1600. However, a drop below the 0.382 FIB level will trigger a significant correction, and losing 0.5 FIB will reflect weakness in bullish momentum.
Key points from ETH analysis:
- The daily-RSI slope nosedive below the neutral line
- The bearish crossover of the 20 and 100-day EMA will bolster the ongoing correction
- The intraday trading volume in Ethereum is $22.7 Billion, indicating a 42% gain
Source- Tradingview
Over the last month, ETH/USDT market value nearly doubled, outpacing Bitcoin’s gain. The altcoin’s north walk showed a steady breakout of higher resistance and formed a local top at $2000 psychological resistance.
Furthermore, on August 14th, the ETH price reverted from the $2000 resistance with an evening star pattern and triggered an occasional bull trend pullback. However, recent news that the US Fed may increase the interest rate by 0.75% ignites a sudden sell-off in the market.
As a result, the ETH price dropped 8% today and nosedive below the combined support of $1775, 20 EMA, and 100 EMA. Furthermore, a decisive breakdown from the mentioned support with increased volume activity indicates the current correction may extend longer.
Thus, a daily candlestick closing below the $1775 mark will flip this level into potential resistance. An expected retest may offer an entry opportunity for short sellers before the prices drop another 6.5% to retest the $0.382 Fibonacci retracement level at $1600.
If the selling pressure persists, the ETH price will breach this mentioned level and drop a 10% to hit the 50% retracement level.
Technical indicator-
EMAs: the 20-day EMA provided dynamic support to the ongoing recovery rally. However, a breakdown from this support bolsters the correction theory.
RSI: the daily-RSI slope dropped from the overbought region to bearish territory within a week, indicating a sudden and unhealthy shift in market sentiment. Thus, it means the market may remain uncertain for a few sessions, accepting or rejecting the recent drop.
- Resistance level- $1780, and $2000
- Support level- $1600 and $1420
- Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch
- CFTC, SEC Launch ‘New Era of Collaboration’ to Clarify Crypto Rules, End Regulation by Enforcement
- Senate Committee Finalizes Updated Crypto Market Structure Bill Draft, Release Expected In Days
- €648 Billion Nordea To Allow Customers to Trade Bitcoin-Linked ETFs
- Uphold Joins Gemini, Relaunches XRP Debit Card Following SEC Lawsuit Resolution
- Cardano Price Risks 20% Crash Amid Death Cross and Falling ADA ETF Odds
- Bitcoin Price Forecast as Trump Cuts Tariffs After US-China Trade Deal
- Analyst Foresees a Parabolic Rally for Pepe Coin Price as Whale Accumulation Intensifies
- Fidelity Amends S-1 for Solana ETF: Is SOL Price Set to Rally?
- Pi Coin Price Targets $0.65 as ISO 20022 Membership Boosts Institutional Confidence
- Ethereum Price Flips BTC in Strategy Shift, Eyes $4500 Level
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
