Ethereum Price Analysis: Low Volume Pullback Tease ETH To Hit $1600

A minor descending trendline keeps the buyer's activity in check; will the ETH holders lose $1700 support?
By Brian Bollinger
ethereum price rally

While the Bitcoin price witnessed a minor consolidation, the Ethereum(ETH) price lost more ground this week and tumbled to yearly support of $1721. However, the altcoin is bullish on the weekend and may retest the breached $1900 support to validate further downfall. 

Advertisement
Advertisement

Key points: 

  • The ETH chart shows a straight-eight red candle on the weekly time frame chart
  • The $1700 support fallout would slump ETH price to $1600 support
  • The intraday trading volume in the Ethereum is $11.4 Billion, indicating a 26.3% loss

ETH/USDT ChartSource- Tradingview

The Ethereum(ETH) price has experienced a consistent downfall for the past eight weeks, showcased by the eight red candles on the weekly chart. On May 9th, the altcoin lost the last quarter button support of $2300, suggesting a resumption of the prevailing downtrend.

The post-retest rally tumbled the ETH price by 18.5%, which took a breather at $1900 support. For nearly two weeks, this support stalled the ongoing downtrend teasing a potential pullback. However, the increasing selling pressure pulled the altcoin below the $1900 mark on May 26th.

After establishing a new lower low of $1721, the ETH price reverted 5% to retest the potential resistance levels ahead, such as $1800, $1900, and a descending trendline.

A bearish reversal from these resistances could potentially breach the $1800 support and hit the next significant support at the $1600 mark.

Advertisement
Advertisement

Technical indicator-

Despite a falling price action, the MACD indicator rises with a bullish crossover between the signal and the MACD line. This buy signal may bolster the bullish pullback to the overhead trendline.

The enlarged gap between the ETH price and the fast-moving 200-day EMA suggested aggressive selling in the market. However, an expected bullish pullback in price may face ample supply pressure at aligned resistance of 20 EMA and descending trendline.

  • Resistance level- $1800, and $1800
  • Support level- $1700 and $1600
Advertisement
Brian Bollinger
From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and 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.
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.