Buyers Losing Key Support Hints Ethereum Price at 12% Downside Risk for Coming Week
The Ethereum price breakdown from monthly support of $1827 indicates this altcoin is poised for a longer correction. However, the falling price witnessed significant demand pressure near the 100-day EMA at $1766, indicating the buyers have not thrown the towel yet. Thus, in the coming week, the coin holder may witness a brawl between the buyers and sellers to claim trend control.
Key Points:
- A downsloping resistance carries the ongoing correction phase in the Ethereum price
- A breakdown below $1827 has set a potential fall of 12% to reach the $1600 mark.
- The intraday trading volume in Ether is $4.39 Billion, indicating a 49% loss.
Source- Tradingview
After giving a decisive breakout from the $1827 support of May 11th, the sellers failed to offer a significant follow-up indicating a weakness in bearish momentum. Today, the Ethereum price trades at $1803 with an intraday gain of 0.42% and continues to hover between the $1827 level and the 100-day EMA slope.
If the buying pressure persists, the Ethereum price may retest the breached support as potential resistance. If the sellers sustain below the $1827 level, the correction phase will prolong 11.5% and retest the combined support of $1600 and a long coming support trendline.
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The Ethereum price has rebounded from this support four times indicating the buyers are accumulating this asset at pullbacks which is a sign of an established uptrend.
Conversely, if the ETH price surged above the $1827 barrier, the bearish momentum would weaken, but the traders would receive sufficient confirmation for recovery once the price breached the overhead trendline.
Technical Indicator
Relative Strength Index: A clear bearish divergence between the price and RSI slope peak of mid-January and mid-April reflecting underlying weakness in bullish momentum. Thus, the Ethereum price is likely to witness a prolonged correction to 1600.
Exponential Moving Average: A potential bearish crossover between the 20-and-50 EMAs will encourage selling pressure in the market.
Ethereum Coin Price Intraday Levels-
- Spot rate: $1767
- Trend: Bearish
- Volatility: Medium
- Resistance level- $1830 and $1920
- Support level- $1700 and $1600