Ethereum Price Remains Constricted, Can It Move Above $1,900?
August 04 2022 - 09:00PM
NEWSBTC
Ethereum price was trading laterally between the $1,700 and $1,600
price mark. At the moment Ethereum was standing firm on the $1400
support line. Over the last 24 hours, Ethereum price depreciated
over 4%. Bearishness started to prevail on ETH’s chart and
technical outlook pointed towards the same direction. For the bulls
to resurface Ethereum price needs to climb above the $1,745 price
ceiling. Incase ETH manages to break past the $1,745 price mark and
remains above that level, chance of revisiting $2,000 aren’t bleak.
Buyers exited the market as the coin met with a sell-off on its
four-hour chart. Ethereum price might trade near the $1,300 price
mark in case sellers take over the market. Over the past week,
Ethereum noted positive price action however, the bulls were unable
to hold onto the momentum. Ethereum price is also likely to be
affected considerably by the Ethereum merge that is due in the
month of September. In this software upgrade, the token will move
from a Proof-of-stake (PoS) consensus to Proof-of-work (PoW)
consensus. This would render mining useless because validators will
be in charge of securing the new network. Ethereum Price Analysis:
Four Hour Chart ETH was trading at $1,590 on the four hour
chart. Currently the coin has managed to stay afloat over the
$1,500 support line. Incase the number of sellers start to
overpower the buyers, Ethereum price could soon fall to $1,300 on
its chart. Over the last week the coin has been moving up and down
between the $1,700 and $1,600 price levels respectively. Immediate
price resistance for the coin was at $1,745 and for bulls to be
back, it is vital ETH moves above that level. Local support for the
coin was at $1,471 and a push by bears could make Ethereum price
trade as low as $1,300. The amount of Ethereum traded remained low
highlighting bearishness as sellers returned on the chart.
Technical Analysis The altcoin captured the effects of a sell-off
as the indicators point towards negative price action. The Relative
Strength Index was situated below the half-line as sellers took
over the market. Continued selling pressure will cause Ethereum to
further lose considerable value. Ethereum price was below the
20-SMA line, this reading was considered bearish. It meant that
sellers were driving the price momentum in the market. Related
Reading | Polkadot Price Moves Above $8, Sets Eye On $9 Ethereum
flashed sell signal on the four hour chart | Source: ETHUSD on
TradingView ETH’s other indicators were in agreement with the fall
in buying pressure. As Ethereum price extended losses, the coin
continued to depict sell signal on its chart. Moving Average
Convergence Divergence depicts the price direction and change in
the same. MACD underwent bearish crossover and that gave rise to
red histograms which are tied to a sell signal for the coin.
Parabolic SAR identifies the current trend in the market, the
reading suggested that there was a downtrend as the indicator’s
dotted lines were above the candlestick. Related Reading | TA:
Ethereum Eyes Fresh Rally If It Clears This Key Breakout Zone
Featured image from UnSplash, chart from TradingView.com
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