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Since last month the Ethereum(ETH) price has continued to fall under the dynamic resistance of the descending trendline. However, the buyers defending the $1700 support have caused a narrow consolidation in price. Therefore, the interested traders must wait for a genuine breakout on either side before entering a certain trade.
Key points:
- High volume activity during the downfall teases $1700 support.
- The descending trendline breakout would invalidate the bearish thesis.
- The intraday trading volume in Ethereum is $15.4 Billion, indicating an 18.5% gain.
Source- Tradingview
The aggressive sell-off ETH/USDT pair witnessed during the first half of May breached the January low of $2170. However, amid the growing uncertainty in the crypto market, the selling pressure weakened, resulting in a slow yet steady fall.
Since Mid-May, the ETH price has been lowering in response to the descending trendline and reached a new low of $1718. The multiple retests to this resistance represent its strong influence on the market participants.
Today, the ETH price is down by 3.26% and revisits the lower low support of the $1720 mark. If sellers pull the altcoin below this support, the extended downfall will plummet to 18.5% lower to the $1400 mark.
Thus, until the resistance trendline is intact, the Ether could continue to bleed and fall to lower levels.
Conversely, a potential breakout from this resistance may trigger a pullback opportunity.
Technical indicator-
The MACD indicators’ slopes rising undermines the falling ETH price and indicates growth in bullish momentum. Thus, this sharp divergence with price action indicates altcoin may eventually breach the dynamic resistance trendline.
The Ether price wavering between the bottom and midline of the Bollinger band indicator reflects the sellers hold the upper hand. Moreover, the midline aligned with the resistance trendline offers additional weightage to this resistance.
- Resistance level- $1900, and $2150
- Support level- $1700 and $1600
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