Ethereum started the week with a promising performance, experiencing a gain of over 3%. However, the bullish momentum was short-lived as the altcoin failed to sustain its position above a key resistance level. Within the past 24 hours, ETH’s market value has declined by nearly 3%. Throughout the week, the ETH price has shown limited progress, with the bears dominating the price movement. The altcoin’s technical outlook indicates a decline in buying strength, accompanied by low demand and accumulation on the daily chart. Related Reading: Ethereum Staking Hits Over $40 Billion After Shanghai Upgrade: What It Means For ETH To prevent further strengthening of the bears, it is crucial for Ethereum to surpass its immediate resistance in the upcoming trading sessions. Failure to do so may lead to additional pressure from sellers, potentially causing Ethereum to breach its immediate support level and experience a significant loss in value during future trading sessions. Additionally, the fall in the ETH market capitalization suggests an increase in selling strength, as observed on the daily chart. Ethereum Price Analysis: One-Day Chart At the time of writing, the trading price of ETH was $1790. Despite attempting to trade within the $1800 price range, the altcoin encountered selling pressure, resulting in its depreciation. The current overhead resistance for Ethereum is $1810. If the altcoin surpasses this resistance level, it has the potential to trigger a rally in its price. On the other hand, if the present price level experiences a decline, Ethereum is likely to decline further to $1750 before eventually reaching the $1700 price mark. The recent session saw a decrease in the volume of Ethereum traded, indicated by the red colour, indicating a weak buying strength. Technical Analysis Throughout this month, Ethereum experienced a decline in demand, resulting in reduced buying strength. The Relative Strength Index (RSI) dropped below the midpoint line, suggesting a decrease in demand and an increase in selling pressure on the chart. Additionally, the price of Ethereum fell below the 20-Simple Moving Average (SMA), indicating that sellers were dominating the market’s price momentum. Given that Bitcoin’s price movement remains uncertain, several altcoins, including Ethereum, have followed a similar price trajectory. However, if Ethereum gains broader market strength, there is a possibility that demand could return, causing ETH to surpass the 20-SMA line and potentially climb higher. Due to the absence of demand, ETH did not exhibit significant buy signals. The Moving Average Convergence Divergence (MACD), a tool used to indicate price momentum and potential trend reversals, showed small green histograms that do not provide conclusive buy signals at this point. The Bollinger Bands, which measure price volatility and potential fluctuations, have maintained a parallel shape. However, they displayed slight convergence, suggesting that ETH may trade within a relatively stable range without substantial price fluctuations. Related Reading: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America To reclaim the $1800 price level, it is crucial for buyers to re-enter the market at the current price level. Their participation is essential for Ethereum to regain strength and potentially push the price higher. Featured Image From UnSplash, Charts From TradingView.com
