What’s Ahead for ETH Price as it Slips Below $1700?

The cryptocurrency market experienced a notable event on August 17th, marked by a sell-off in the leading digital currency, Bitcoin. This sell-off was prompted by SpaceX’s decision to divest its Bitcoin holdings, amplifying selling pressure across the crypto space. Consequently, Ethereum, another prominent cryptocurrency, saw a substantial outflow, leading to a significant breach of a longstanding support trendline. The breach of this support suggests that the ETH price could be poised for an extended correction phase.

Also Read: Ethereum Market Undervaluation Could Confirm Major Bullish Move

ETH Price Daily Chart: Key Points

• The Ethereum fear and greed index at 27% reflects negative sentiment in the market
• A breakdown below the support trendline of the channel pattern sets the prices for an 18% drop
• The intraday trading volume in Ether is $16.5 Billion, indicating a 178 gain.

Source- Tradingview

Over the past nine months, the second largest cryptocurrency Ethereum experienced a study uptrend using a parallel channel pattern. During this period, the lower trendline bolstered buyers to accumulate at price dips.

However, on August 17th, the Ethereum price dropped 6.8% and breached the dynamic support. This breakdown could bolster change in market sentiment from buying on dips to selling on rallies.

If the coin price managed to sustain below the pierced support, the selling pressure could push the price to $1625, followed by $1400.

A possible crackdown of the $1625 swing low will also violate Dow theory of uptrend, giving additional confirmation of a prolonged downfall.

Should You Consider Selling Ethereum Now?

Despite the massive breakdown mentioned above, the ETH price showcased long-tail rejection in the daily chart at $1625 support. This buying could be associated with the market participants entering correction dips. Therefore, a minor pullback is expected which could retest the breached support trendline. The coin price sustainability below the ascending trendline could offer a short-selling opportunity to interested traders

• Exponential Moving Average: The coin price breakdown below the 200-day EMA reflects a negative trend in the market.
• Relatives strength index: The daily RSI slope at 21% reflects an oversold Ethereum price, increasing the potential of a bullish pullback.