Ethereum's Price Battle: Can $1800 Support Weather the Bearish Storm?

 

Ethereum's Price Battle: Can $1800 Support Weather the Bearish Storm?

Ethereum, the second most notable cryptocurrency, is currently retreating within the bullish market, with its price persistently sliding under the bearish channel. This challenging scenario for investors unfolds alongside Bitcoin's inability to breach the crucial $30,000 threshold.

Following its recent peak at $2,133, Ethereum (ETH) witnessed profit-taking, manifesting a pattern of higher-lows across various time frames. Notably, the 4-hour ETH chart reveals a falling wedge pattern, with the current crypto price poised on the brink of potentially breaking down from this channel.

Source: Tradingview 


Based on the hourly chart, Ethereum's price currently stands within a critical zone, where a mere 20-point decline could potentially trigger a significant 100-point drop in Ethereum's value. As of now, the Ethereum-to-USDT pair is being exchanged at $1817, with buyers making concerted efforts to prevent further decline below the pivotal $1800 support threshold.

Nevertheless, bears appear to be gathering momentum in their attempt to challenge Ethereum's dominance. The next notable support level is located at $1700, although bears would face considerable resistance in pushing the market down to this level. Conversely, bears are actively placing their sell orders at the pivotal defensive mark of $1880.

Source: Tradingview 


Nevertheless, when observing Ethereum's daily price chart, a mild sideways movement is evident. Notably, the technical indicator Relative Strength Index (RSI) is indicating a bearish sentiment in the cryptocurrency, given its peak falling below the 50 range. Both the 20-SMA and RSI are aligning to support the bearish outlook, particularly in the context of a potential breakdown of crucial support levels.

Similarly, the Stochastic RSI is presently lingering in an extremely oversold territory. However, this indicator is gradually emerging from the negative region, potentially serving as a conduit for bullish momentum to find an opportunity for resurgence.

also read: Setting the Stage: Bullish Breakout Signals Shiba Inu's Rally Revival

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Disclaimer:
This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.