Ethereum Price Analysis: ETH Price Erases Recovery Gains Towards $2,000

ETH price witnessed a sharp reversal from the session’s tops on Monday. The recent price action pull down the second-largest cryptocurrency to the coveted $2,000 mark. It briefly fell below the mentioned level but swiftly recovered. However, the ETH buyers keep on struggling to carry forward gains as face upside pressure.

• ETH price upside movement lost traction as the fresh trading week begins.
• The recovery mode took a step back as the U.S trading session started.
• A strong red candlestick indicates the presence of the sellers at the upper level.

As of press time, ETH/USD reads at $2,000, down 6.45% for the day. The 24-hour trading volume sustains near $20,771,000,352 with gains of more than 48%.

A rise in volume along with a fall in price is a bearish sign. Thus, we advise investors to capitalize on any sell-side opportunity with proper trading levels.

ETH price looks weaker on the major time frame

ETH price attempted a bounce back from the lows of $1,701.04 made in the previous week. ETH recorded gains of 26% in four-session. But, investors should not be overwhelmed by the upside movement as due to the extreme oversold market condition, this bounce back in the price is very much anticipated.

The dark clouds for ETH are expected to stay longer. A slip below the day’s low would bring the prevailing trend back in action. On moving downside, the first target could be the psychological $1,700 level.

On the other hand, a change in the bullish sentiment might result in a U-turn in the price. A decisive close above $2,100 would see more gains toward $2,250 followed by the horizontal resistance zone at $2,500.

Looking at the technical indicators, the RSI (relative strength index) still holds below the average line indicating a warning sign for the buyers. The moving average convergence divergence (MACD) remains depressed with no clear directional bias.