Ethereum Price Analysis: Is $1650 Support a Safe Haven in the Face of Market Downturn?

Ethereum Price Analysis: Amidst the June 10th sell-off in the crypto market, the Ethereum price gave a high momentum breakdown from the $1775-$1764 support zone. This price level supported the buyers for over two months despite the highly volatile phase, indicating the holders lost a crucial footing. Thus, this breakdown is likely to boost selling pressure in the ETH price and extend the prevailing correction phase.

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Ethereum Price Daily Chart

• The ascending trendline is the representation of the current bull run in the ETH price
• The bearish breakdown below the $1775-$1764 set the coin price for a potential 6% drop
• The intraday trading volume in Ether is $4.6 Billion, indicating a 0.27% loss.

Source- Tradingview

The Ethereum price closing below the last swing low of $1775-$1765 reflects a continuation signal of the ongoing correction phase. By the press time, the ETH price trades at $1750, with an intraday gain of 0.14%.

If the coin price sustains above the breached support in the coming days, the altcoin will slide lower and meet the $1700 mark. This psychological support aligned with the 200-day EMA creates a high area of interest for buyers to reaccumulate.

Under a pessimistic approach, a breakdown below $1700 will pull the price back to the combined support of $24000 and ascending trendline. This dynamic support could offer traders great pullback opportunities as it did in December 2022, followed by January and March 2023.

Conversely, a breakdown below the support trendline with daily candle closing will trigger a free fall in ETH.

Will Ethereum Price Plunge below $1650?

While the overall market sentiment favors a downfall in Ethereum price, the daily chart shows some crucial support that can hold buyers at higher levels. The $1700 horizontal support and the angular trendline are suitable accumulation zones that can undermine the current downfall and recuperate the bullish momentum. Until the support trendline is intact, the ETH price is less likely to fall below $1650.

• Directional Movement Index: The expanding gap between the DI slopes in a bearish alignment(DI- above DI+) highlights a bear trend sentiment among traders.
• Exponential Moving Average: A bearish crossover between the 20-and-50-day EMA brings additional selling momentum in the ETH price