Ethereum’s recovery appeared to be slowing down after testing a key resistance area earlier this week. It is currently in the red following a steady 8% loss this week. The buyers are trying to regroup.
Last month, Ethereum recovered from a lower boundary of a channel and broke out of a two-month resistance line to mark a one-month high at exactly $1,751. The high level was rejected and the price rolled back.
It entered this month on a negative note and continued to show signs of weakness by the day. Although the setup looks like a retest pattern of the recent breakup. It is looking for a solid support level to produce a bounce.
Yesterday, Ethereum reacted to the $1,606 level and increased briefly to test $1,662. It retraced from there and lost 1.1% under 24 hours as sellers mounted pressure. A drop below the $1,500 level could trigger a huge sell-off in the coming weeks.
However, if ETH repeats June’s bullish pattern, we can expect a lower high movement to the upper boundary of the channel before resuming its five-month bearish impulse.
The daily volume indicator has continued to fade by the day, indicating that sellers are still present. A continuous money outflow could trap the price below $2,000 until it finds a break out of this channel. All in all, Ethereum remains bearish from a short-term perspective.
ETH’s Key Level To Watch
Source: TradingView
If the price drops below $1,600, the next area of interest for the bears would be $1,560 and $1,500. The lower levels to consider as support are $1,461 and $1,368, tapped as March’s low.
Let’s consider a strong bounce above the immediate $1,670 resistance level, the next buying target for Ethereum would be $1,803 and $1,900, which is located at the channel’s upper boundary.
Key Resistance Levels: $1,670, $1,746, $1,803
Key Support Levels: $1,560, $1,461, $1,368
- Spot Price: $1,634
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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