MEXCVolume Action Hints Ethereum Price May Fall Below $1200 Mark
The Ethereum price action is gradually narrowing with two converging trendlines. However, this consolidation phase is part of a bearish pattern called an inverted pennant. In theory, this consolidation offers a short break period to replenish the bearish momentum. Will the Ethereum price break the $1200 support?
Key points:
- Higher volume during bearish days suggests the Ethereum price is bound for a prolonged downfall
- The Ethereum price trading below the crucial EMAs(20, 50, 100, and 200) indicator multiple hurdles for bullish recovery.
- The intraday trading volume in Ethereum is $5.4 Billion, indicating a loss of 3.7%.
Source- Digitalcoinprice
A higher number of daily red candles during the consolidation phase indicates the selling activity receives more involvement. Moreover, the Ethereum chart shows a high volume spike during those red candles, accentuating that market participants are interested in lower prices.
Amid the ongoing selling in the crypto market, the Ethereum price turned down from the overhead trendline and plunged 2.75% in the last two days. The altcoin currently trades at $1297 and is already in reach with a support trendline.
Thus, the narrow price spread between the trendline can be validated as a no-trading zone. Therefore, the interesting trades must wait for the price to break either trendline to escape this long conditional.
Furthermore, with the likelihood of the price breaking the lower support trendline, the Ethereum price could drop 4.5% to hit the $1240 support. In addition, a breakdown below this support will further extend the downward spiral.
On a contrary note, a bullish breakout from the triangle consolidation is possible. This breakout could undermine the bearish thesis and hints at a new recovery rally.
Technical indicator-
Bollinger band: the indicator’s upper and lower shrunk narrow accentuates a no-trading zone in Ethereum.
Relative strength index: though the price action supports the bearish theory and resumption of the prevailing downtrend, the rising RSI slope indicates the buyers are wrestling for trend control. Thus, this bullish divergence strengthens the possibility of a resistance trendline breakout.
Ethereum intraday price levels
- Spot price: $1298
- Trend: Sideways
- Volatility: High
- Resistance level- $1400 and $1550
- Support level- $1200 and $1000
- Trump Insider Whale Reloads $430M Long on BTC, ETH Ahead of Tomorrow’s Fed Rate Cut Decision
- Breaking: $2.6B Western Union Announces Plans for Solana-Powered Stablecoin by 2026
- Trump Media Launches Polymarket Rival, Eyes $9B Prediction Market with Crypto.com
- Bitget Lists Common Token, Launchpool Offers 36M COMMON in Rewards
- Coinbase Prime Taps Figment to Boost Institutional Staking on Solana, Cardano, and Sui
- Pi Network Patterns Point to More Gains Despite Manipulation Claims
- HBAR Price Poised to Hit $0.30 as Canary Capital ETF Starts Trading.
- Will Solana Price Rally to $300 as Bitwise Launches $BSOL ETF?
- XRP Price Chart Patterns Hint at 2017-Style Breakout as Evernorth Acquires $1B XRP Ahead of Nasdaq Debut
- Cardano Price Eyes 80% Rally as x402 Upgrade Sparks Hope for AI Payment Expansion
- Polymarket Traders Bet Ethereum Price to Hit $5,000 as Bullish Pattern Forms
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.
