Ethereum Price Breakdown below Crucial Support Alerts a Potential Crash to $1500; Sell or Keep Holding?

Amid the broader market sell-off, the Ethereum price is falling for six consecutive days. From the psychological barrier of $2000, the coin price plunged 9.66% and reached its current price of $1821. However, with this downfall, the sellers also breached a long-coming support trendline which was carrying the ETH price recovery for nearly two months. Here’s how this breakdown may influence the future price of this number two cryptocurrency.

Key Points: 

• The Ethereum Fear and Greed Index at 48% projects a neutral sentiment among traders
• The Ethereum price breakdown below the $1827 support threatens a potential 17% fall.
• The intraday trading volume in Ether is $10.4 Billion, indicating a 77.46% gain.

Source- Tradingview

With an intraday fall of 1.2%, the Ethereum price shows a bearish breakdown below an ascending support trendline. The coin price bounced back four times from this support in the last two months indicating the traders were accumulating at dips, keeping a sustained bullish run.

However, with the recent breakdown, we can expect a shift in market sentiment from buying on dips to selling on rallies. Along with this support trendline, the price also shows a drop below the horizontal support of $1827, and a 23.6% Fibonacci retracement level, accentuating the significance of losing this support.

Also Read: Best Cryptos Private Sale For 2023

However, the price needs to confirm two criteria to obtain a short opportunity; which is a daily candle closing below the aforementioned support and a suitable volume hike. If these conditions are met, the ETH price is likely to drop 17% to hit the $1500 mark.

However, if the coin price did not give a decent follow-up and rise back above the trendline, the bearish thesis will get invalidated. 

Technical Indicator

Moving Average Convergence Divergence: The downsloping MACD(blue) and signal(orange) reflect a bear trend momentum in the market

Exponential Moving Average: The breached 20-and-50-day EMAs may offer an extra edge to short-sellers 

Ethereum Coin Price Intraday Levels-

• Spot rate: $1821
• Trend: Bearish
• Volatility: Medium
• Resistance level- $1830 and $2000
• Support level- $1700 and $1650