At the time of writing, the trading price of ETH was $1790. Despite efforts to trade within the $1800 price range, the altcoin experienced selling pressure, resulting in depreciation. The current overhead resistance for Ethereum is USD 1810. If the altcoin crosses this resistance level, it has the potential to trigger a rally in its price.
On the other hand, if the current price level falls, Ethereum will likely drop further to USD 1750 before eventually reaching the USD 1700 price. The recent session saw a decline in Ethereum’s traded volume, indicated by the red color, indicating weak purchasing power.
Technical analysis
During this month, Ethereum experienced a drop in demand, resulting in reduced purchasing power. The Relative Strength Index (RSI) fell below the midline, indicating a decrease in demand and an increase in selling pressure on the chart.
In addition, the price of Ethereum fell below the 20-Simple Moving Average (SMA), indicating that sellers dominated the market’s price momentum.
As Bitcoin’s price movement remains uncertain, several altcoins, including Ethereum, have followed a similar price trajectory. However, if Ethereum gains greater market strength, there is a possibility that demand will return, causing ETH to cross the 20-SMA line and possibly climb higher.
Due to the absence of demand, ETH did not show any 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 time.
The Bollinger Bands, which measure price volatility and potential swings, have maintained a parallel shape. However, they showed slight convergence, suggesting that ETH can trade within a relatively stable range without substantial price swings.
To regain the $1800 price point, it is critical that buyers re-enter the market at the current price level. Their participation is essential for Ethereum to regain strength and potentially boost its price.
Featured image from UnSplash, charts from TradingView.com
