Ethereum Price Analysis Hints 5% Drop Before Buyers Trigger a New Recovery Cycle

Ethereum Price Analysis: Amid the increasing indecisiveness in the crypto market, the Ethereum price has been in a sideways trend between $1827 and $1790. The coin prices show attempts to breach the aforementioned two levels indicating a narrow range formation in the daily chart. However, under the influence of a wedge pattern, the Ethereum price maintains its short-term trend on the downside.

Key Points: 

• The ongoing correction in Ethereum price can be traced by a falling wedge pattern
• A potential breakdown above $1790 will set the ETH price on a 5% drop
• The intraday trading volume in Ether is $5.5 Billion, indicating a 7.4% loss.

Source- Tradingview

By the press time, the Ethereum price traded at $1793, with an intraday loss of $1.7%. With today’s drop, the coin price challenges the $1790 range support indicating another breakdown attempt from sellers to maintain trend control.

A daily candle closing below $1790 will increase the underlying selling pressure and may plunge the price 5% down to hit the lower trendline of the falling wedge pattern. In theory, this pattern is known as a bullish continuation pattern which recuperates the bullish momentum once the prices breach their resistance trendline.

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Thus, a potential retest to the lower trendline is likely to trigger a bullish reversal and initiate a new recovery cycle within the pattern. However, the ongoing correction in the Ethereum price will prolong until the wedge pattern is intact.

Therefore, for the Ethereum price to ride a sustained rally the prices need to break above the overhead trendline.

Technical Indicator

Moving Average Convergence Divergence: The falling MACD(blue) and signal(orange) line project a sustained downtrend in the Ethereum price

Exponential Moving Average: A potential bearish crossover between the 20-and-50-day EMAs increase the selling pressure in the market

Ethereum Coin Price Intraday Levels-

• Spot rate: $1796
• Trend: Bearish
• Volatility: Medium
• Resistance level- $1830 and $1940
• Support level- $1790 and $1700