The bear market has been pretty rough for all the major altcoins, including Ethereum. During the last 24 hours, the coin fell by 4%. However, in the last week, Ethereum tried to stage a recovery. The bears continued to drag prices lower despite that.
Ethereum buyers have tried to remain calm throughout most of the downturn. The constant push from the bears has caused the altcoin to see little to no recovery. The coin’s technique also pointed towards a further drop in price before Ethereum starts to climb back up the chart.
On the recent development front, the altcoin has announced that its possible merger will take place in the month of August this year. Whether the altcoin price reacts positively to this news remains to be seen. The probability of a trend reversal cannot be ruled out, as the chart below shows.
Ethereum Price Analysis: One Day Chart
Ethereum was trading hands at $1900 at the time of writing. Continued drop below the current price level would see the coin trading at $1700. If buyers continue to be scarce, the coin could see a further 30% drop and trade near $1200.
On the other hand, the coin may trade slightly above the $2000 mark and then attempt to trade above the $2200 mark. Ethereum traded volume was still looking red as bearish pressure had not subsided in the market. .
The possibility of a possible drop cannot be ruled out because the one-day chart shown on the cross of death. A death crossover occurs when the short-term moving average is below the long-term moving average. In the SMA, the 20 SMA was seen below the 50 SMA, which indicates the weakness of the ETH price in the market.
ETH price was below the 20-SMA line as sellers were driving price momentum in the market. The relative strength index was also weak according to other techniques. RSI was below the zero line, just above the 20 mark. This reading meant that the sellers largely preceded the number of buyers at the time of writing.
The moving average convergence divergence represents market price momentum. MACD showed red histograms below the zero line, indicating continued bearish price action for the coin.
Awesome Oscillator also showed green histograms below the midline, according to the MACD. The flickering histograms of AO below the midline indicated a sell signal for Ethereum.
Related Reading | Swap Inflows Rock Bitcoin and Ethereum as Market Struggles to Recover
Chance Of A Price Reversal?
Ethereum formed a falling wedge pattern on the one-day chart. A falling wedge pattern is associated with a change in current price action or a change in trend. At this time, Ethereum was in bearish price momentum.
Since a falling wedge pattern has formed, the possibility of the currency bouncing cannot be ignored. In case of a move north, the first resistance was at $2,093 and then $2,200 respectively. For the bearish stance to be invalidated, Ethereum must trade above the $2,900 mark.
Related Reading | Ethereum prepares for Ropsten Testnet merger as token struggles to hold $2k support
Featured image from UnSplash, Charts from TradingView.com