On the other hand, if the present price level experiences a decline, Ethereum may drop further down to $1750 before eventually reaching the $1700 mark. In recent sessions, there was a decrease in volume of Ethereum traded which indicated weak buying strength as shown by red color on charts.
Technical Analysis
Ethereum has experienced a decline in demand this month resulting in reduced buying strength. The Relative Strength Index (RSI) dropped below the midpoint line indicating decreased demand and increased selling pressure.
Additionally, the price of Ethereum fell below the 20-Simple Moving Average (SMA), suggesting that sellers were dominating market momentum. Several altcoins including Ethereum have followed similar price trajectories due to Bitcoin’s uncertain movement. However, if Ethereum gains broader market strength, there is potential for demand to return causing ETH to surpass its 20-SMA line and potentially climb higher.
Ethereum displayed a decrease in buy signal on the one-day chart | Source: ETHUSD on TradingView
Due to the absence of demand, ETH did not exhibit significant buy signals. The Moving Average Convergence Divergence (MACD), which is used to indicate price momentum and potential trend reversals showed small green histograms that do not provide conclusive buy signals at this point.
The Bollinger Bands measure price volatility and potential fluctuations have maintained a parallel shape but with slight convergence suggesting that ETH may trade within relatively stable range without substantial price fluctuations.
To reclaim the $1800 level, it’s crucial for buyers to re-enter the market at current levels as their participation is essential for Ethereum to regain strength and potentially push its prices higher.
Featured Image From UnSplash, Charts From TradingView.com
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