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ETH Price Analysis: Ethereum (ETH) Stuck at Major Support, Is A Drop Below $1600 Inevitable?

ETH Price Analysis: Ethereum (ETH) Stuck at Major Support, Is A Drop Below $1600 Inevitable?

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For price to start a new bullish trend, Ethereum (ETH) must break over its major resistance of $2103 & hold. Around this area lies the top trend line of the descending channel & the 200 MA. Both of these marks have kept ETH price in a downtrend for the past couple months. This price area will be the true test for ETH bulls as a break above these 3 important marks will likely clear the path for a run to its major resistance zone of $2330-$2432.

While looking at the RSI, we can see a 2 week trend line has just broken. If strength stays above this trend, expect a push to the 50 value or above. This will likely fuel price to rise $100+. The MACD has been flatlining under the 0 value getting ready for a vicious break. As long as the blue MA stays over the orange MA expect a bullish break soon.

Ethereum (ETH) Price Bearish Scenario Continues

ETH has not been able to crack its bearish trend ever since its ATH of $4500 was recorded. Ethereum (ETH) along with the rest of the market has fallen nearly -70% from highs set in April/May. Investors & traders continue to disagree as to whether the cryptocurrency market has entered a bear market or not. Many coins have been stuck within a descending channel which has kept the price stuck in a downtrend.

Price has been respecting its descending channel for nearly 2 months. Bulls & Bears have equally defended both sides which has left price action in a consolidation like formation. At the time of writing, ETH sits within its major support zone of $1811-$1944.

If this area fails to hold, ETH price will likely free fall to a new low near $1650. If this does occur, ETH becomes in danger for a retest of previous all time high near $1500. This would be likely a bounce point for some type of uptrend to begin.

ETH price intraday levels

Spot rate: $1921
Trend: Neutral
Volatility: Low
Support: $1811
Resistance: $1944

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

Domenic CoinGape

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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