Ethereum Slippage, What’s the Token’s Next Significant Trading Level?

At the time of writing, Ethereum is slipping again on its charts. Last week, the coin lost about 10% of its value. Bears gain strength in the market as buyers leave the market.

The technical outlook for the coin remains bearish with increased selling pressure. The coin will continue to remain unchanged for the next trading session.

The coin has also experienced a sustained sell-off over the past 48 hours. Ethereum fell below its long-term support line at $1,900. The coin has attempted to recover on its own over the past 24 hours, but the bearish price action remains strong at the time of writing. The bears may be exerting pressure to push the coin below $1,700.

A break below the $1,700 price mark would lead to a further 19% drop in ETH. For the bulls to breathe, ETH needs to break the $1,900 price barrier again.

Ethereum Price Analysis: One Day Chart

The price of Ethereum on the one-day chart is $1,700 | DayDayNews Source: ETHUSD on TradingView

At the time of writing, the altcoin is priced at $1793. Altcoins have not traded near this price level for nearly a year. The overhead resistance for the altcoin is at $1,900 as the coin must attempt to trade above $2,200 as the bearish pressure is ineffective.

If the bears continue to drive the price action, the local support for the coin is at $1,700, below which the coin can trade. Token trading volume decreases and is green. This shows positivity on the chart.

technical analysis

Ethereum
Ethereum’s buying power rises on the one-day chart| Source: ETHUSD on TradingView

Ethereum is trading very close to immediate support. The coin is trading below the 20-SMA line, which means that the selling momentum is active and strong. This reading means that sellers are responsible for price momentum.

Correspondingly, the RSI is below the half line. This means less purchasing power in the market. However, it can be noted that the RSI has risen, which may indicate that purchasing power is increasing.

A reversal cannot be ruled out as there is a bullish divergence (yellow) on the chart. Bullish divergences are associated with trend reversals.

Related reading | Bearish Indicators: Is Bitcoin About to End Its Ninth Red Week?

Ethereum
Ethereum continues to flash sell signals on the daily chart | DayDayNews Source: ETHUSD on TradingView

The Awesome Oscillator remains negative on the one-day chart. The indicator is supposed to describe price momentum, and the red histogram shows negative price action. The red histogram also depicts a sell signal on the chart.

The Directional Movement Index also determines the overall price action, and it shows that the -DI is above the +DI level. The Average Directional Index (red) is above the 40 mark, which means the current market trend is strong and the bearishness is likely to continue in the coming sessions.

Related reading | Ethereum profitability falls to 2-year low as price corrects below $2,000

Source link