Ethereum could fall further; here’s what the chart says

The bear market has been very harsh on all major altcoins, including Ethereum. The coin was down 4% in the past 24 hours. However, over the last week, Ethereum attempted a recovery. Still, the bears continued to drag prices down.

Ethereum buyers have tried to stay calm during most of the downside. The continued push by the bears has resulted in little recovery for the altcoin. The coin’s technicals also suggest that the price will fall further before Ethereum starts to rise again on the charts.

In terms of recent developments, altcoins have announced a possible merger this August. It remains to be seen whether the price of altcoins will react positively to the news. A trend reversal cannot be ruled out, as shown in the chart below.

Ethereum Price Analysis: One Day Chart

Ethereum is trading at $1934 on the one-day chart | Source: ETHUSD on TradingView

At the time of writing, Ethereum is trading at $1,900. Continued break below current price levels will result in the coin trading at $1,700. If buyers continue to remain scarce, the coin could drop by a further 30% and trade near $1,200.

On the other hand, the coin can trade above the $2000 mark and then try to trade above the $2200 mark. Ethereum’s volume remains in the red as bearish pressure in the market has not declined.

technical analysis

Ethereum
Ethereum Continues to Buy Low on the One-Day Chart | Source: ETHUSD on TradingView

A possible drop cannot be ruled out, as the one-day chart depicted by the death cross. A death cross occurs when the short-term moving average falls below the long-term moving average. On the SMA, the 20-SMA is below the 50-SMA, indicating ETH price weakness in the market.

The price of ETH is below the 20 SMA line as sellers drive price momentum in the market. The relative strength index is also weak according to other technical indicators. The RSI is below the zero line and just above 20 points. This reading means the number of sellers significantly outnumbers the number of buyers at the time of writing.

Ethereum
Ethereum paints negative price momentum on one-day chart | Source: ETHUSD on TradingView

The Moving Average Convergence Divergence describes the price momentum of the market. The MACD is flashing a red histogram below the zero line, indicating a continued bearish coin price.

The Awesome Oscillator also shows a green histogram below the half line, according to MACD. The AO flickering histogram below the half line indicates a sell signal for Ethereum.

Related reading | Exchanges inflow rock Bitcoin, Ethereum as market struggles to recover

Likelihood of a price reversal?

Ethereum

Ethereum is forming a descending wedge pattern on the daily chart. A descending wedge pattern associated with a change in current price action or a trend reversal. Ethereum is currently in bearish price momentum.

The chances of the coin rallying cannot be ignored due to the formation of a falling wedge pattern. In the event of a northward movement, the first resistance is at $2,093 and $2,200. To invalidate the bearish stance, Ethereum needs to trade above $2,900.

Related reading | Ethereum prepares for Ropsten testnet merger as token struggles to get $2,000 support

Featured image from UnSplash, Charts from TradingView.com

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