NewsletterMultiple Resistance Levels Encourage Sellers To Plunge ETH To $1400
The parabolic recovery in ETH/USDT pair surged the prices by 101% from mid-June to August and formed a local top at the $200 mark. Furthermore, during this bull run, the coin price witnessed several pullbacks, which replenished the bullish momentum for further gains.
Key points ETH analysis:
- Higher price rejection at 50-day EMA supports price sustainability below the $1600 mark
- The bearish crossover of the 20-and-100-day EMAs will strengthen the current correction
- The intraday trading volume in Ethereum is $18.6 Billion, indicating a 2.89% loss
Source- Tradingview
On August 14th, the ETH price reverted from the $2000 resistance level, suggesting an occasional price correction. The fresh news that the US Fed plans to increase the rate hike in September by 0.75% accelerated the bearish momentum.
Thus, in the past seven days, the ETH price depreciated 21% and plunged below $1775, and the previous swing low of $1600. However, the coin price is 3.3% up today and plans to test the $1600 mark as potential resistance.
Moreover, the 50-day EMA moving at the same level puts an additional barrier against buyers. If by the end of the day, the altcoin gives a candle closing below the $1600 mark, the potential downfall may slump the ETH price 12.5% down to the $1400 psychological level.
However, even if buyers push the price higher today, the immediate combined resistance of $1775 and 100-day EMA will encourage sellers to follow the above setup.
On a contrary note, a bullish breakout from the $1775 resistance weakens the possibility of this bearish theory and provides a breakout opportunity from the swing high resistance of $2000.
Technical indicator-
Relative strength index: the daily-RSI slope nosedive below the neutral line from the overbought regions indicates a sudden turnaround in market sentiment.
Vortex indicator: the VI+ and VI- slopes last showcased a bearish alignment before mid-July. Thus, a bearish crossover among these slopes offers a sell signal for interest traders.
- Resistance level- $1600 and $178
- Support levels- $1400 and $1275
- Bitcoin Rises as Trump Points to “Extremely Strong” U.S.–China Relations
- Operation Chokepoint: Senator Lummis Calls Out JPMorgan Over Debanking Bitcoin Advocate Jack Mallers
- CME To Launch Spot-Quoted XRP & Solana Futures Amid Rising Institutional Inflows
- Bitwise Dogecoin ETF Launches Nov. 26 as DOGE and XRP Funds Go Live Today
- Bitget Taps Football Star Julián Alvarez in New Push for Global Crypto Adoption
- 3 Signals Hint Shiba Inu Price Can Rebound Soon
- Top 3 Price Prediction: ETH, XRP, and DOGE Show Signs of Bullish Reversal
- Pi Coin Price Pattern Points to a Rally as Top Whale Hits 381M Milestone
- XRP Price Forecast as NYSE Clears Franklin Templeton ETF for Listing
- Cardano Price Outlook as NIGHT Token Set to Launch on December 8
- Hedera Price Set for Explosive 30% Rally as Bulls Trigger Breakout
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal 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.
Premium Partners
