NewsletterAmid 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
- Crypto Bill Talks Stall as Senate Democrats Push Back on Stablecoin Yield Provisions
- Breaking: Coinbase Adds Supports For Solana Tokens On DEX Trading
- Big Short’ Michael Burry Issues Dire Warning on US FED’s $40B T-Bills Buy Plan
- Expert Slams Pi Network Lawsuit as ‘Deeply Flawed,’ Says Case Unlikely to Succeed
- Crypto Market to Crash? Here’s What Bitcoin On-Chain Data and BTC Options Signal
- Dogecoin Price Set to Rebound to $0.20 After Symmetrical Triangle Breakout
- Cardano Price Dips 10% as Midnight Token Launch Turns Sour
- Bitcoin Price Holds $90k as Markets React to Fed Rate Cut: Will BTC Rally to $100k or Fall to $80k?
- Dogecoin Price Eyes $0.30 as Bullish Crossover Pattern Signals a Trend Shift
- Top Analyst Sees Ethereum Price Having a “Big” Breakout as Catalysts Align
- Sui Price Breaks Out of Falling Wedge: Is $2 Next Target?
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.
Premium Partners
