Ethereum Breaches $1,600, How Soon Will Touch $1,100?
July 27 2022 - 9:00PM
NEWSBTC
Ethereum has fallen below its $1,600 support level and has
displayed bearish sentiment on the chart. Broader market weakness
has also contributed to Ethereum’s current price action. Bitcoin
had fallen to the $20,000 price mark and altcoins depicted similar
price movements. Ethereum over the last 24 hours depicted some
minor appreciation on the chart. The altcoin’s technical outlook
remained bearish. Buying strength had fallen over the past two days
and at press time the coin ‘s movement was dominated by sellers.
Continued selling pressure can pull ETH to the $1,100 price level
before it starts to pick up momentum again. In case the bulls find
their way back into the market, ETH might continue to consolidate
on its chart and then try to rise. Buying strength also has to
recover significantly for Ethereum to invalidate the bearish
thesis. Over the last week, Ethereum lost 4% of its market value.
Ethereum Price Analysis: Four Hour Chart ETH was exchanging
hands at $1472 at the time of writing. After Ethereum witnessed a
sharp fall, it tried to recover slowly but bearish pressure was
still strong in the market. Overhead resistance for the altcoin was
at $1,542 and a current fall in price will drag ETH to $1,260. For
bearish thesis to be negated Ethereum has to trade above the $1,600
price mark for longer than a few trading sessions. If buying
strength doesn’t display consistency then Ethereum can fall to
$1,100 in just a matter of time. The volume of ETH traded in the
last session rose which indicated that buying strength struggled to
move north on the chart. Technical Analysis The altcoin over the
last 24 hours registered some increase in price, although technical
outlook was bearish, buying strength tried to recover. The Relative
Strength Index was below the half-line but over the last trading
sessions, there was an uptick in the indicator. This meant that
buying strength was recovering on the four hour chart. Despite the
recovery, the price of the altcoin was below the 20-SMA line, a
reading below the 20-SMA line points towards sellers driving the
price momentum in the market. Related Reading | Shiba Inu Whales
Trading Volume Surges 640% As SHIB Holds Critical Support The fall
in price can be directly tied to a sell signal. The Moving Average
Convergence Divergence depicts price momentum and reversals in the
same. MACD underwent a bearish crossover and flashed red signal
bars which are tied to sell signal for the coin. Directional
Movement Index presents price direction and where the coin is
headed next. DMI was negative as the -DI line was above the +DI
line. The Average Directional Index (Red) was below the 20 mark
which meant that the current price action was losing steam. Related
Reading | TA: Ethereum Recovery Faces Major Hurdle, Risk of Fresh
Decline Exits Featured image from UnSplash, chart from
TradingView.com
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