Ethereum Price Analysis: Consolidates Below $1,600; Is Time To Accumulate?

Rekha chauhan
Updated
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights 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.
ethereum

Ethereum price analysis portrays a negative trend for the day. The price responded to the shift in the market structure and is currently favoring the bears.

  • Ethereum price trades with substantial losses on the first trading day of the week.
  • The price could test the liquidity resting below $1,450 amid sustained selling pressure.
  • However, a daily close above $1,620 could lead to a recovery rally in ETH.
Advertisement
Advertisement

Ethereum price looks for consolidation

Source: Trading view

Ethereum price analysis on the daily chart shows a downside pattern.

ETH produces a breakdown of the  “Rising Wedge” pattern, indicating weakness around the overall look.  The price was not able to break its previous swing high and is taking support near the 50-day exponential moving average. More downside, if breaches the moving average.

The volumes are below the average line and declining, with the price moving upwards, which implies a worrisome. When the market is rising while volume is declining, big money is not the one buying, more likely slowly exiting positions.

If the price breaks below the support level ($1,528), then we can expect a good downside momentum of up to $1,350.

Source: Trading view

On the weekly charts, the ETH price closed above $2000 for the first time On March 29, 2021, and since then the price had made a high of $4867.

But, on May 22, 2022, the price broke the support of more than one-and-half years of $2,000, & started to fall from there up to $898, the fresh all-time low.

In the previous week, the price finally tested the $2000 level again, but the bulls could not sustain the gains, facing heavy resistance which was once acting as a support.

The price is taking resistance to the 20-day Exponential Moving Average (EMA). Along with a 38.6% Fibonacci retracement, which will act as immediate resistance for this week.

On the weekly basis, a bearish engulfing candlestick indicates the presence of sellers at the higher levels. A slippage below the $1,520 critical level would be a blessing for the bears. In that scenario, the price could find the lower targets near $1,340.

On the other hand, a resurgence of discount buying could push the price toward the $1,760  level which could invalidate the bearish outlook. And the price can be higher than $2,000 in the short term.

ETH is bearish on all time frames. Below $1,520  closing on the hourly time frame, we can put a trade on the sell side.

As of publication time, ETH/USD is exchanging hands at $1,578, down 2.45% for the day. The 24-hour trading volume is held at $18,589,056,100  with a loss of less than 1%. This indicates lower volatility over the last 24 hours.

Advertisement

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.

About Author
About Author
Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.