Ethereum’s bias remains bearish on the daily chart following a recent crash to a yearly low. It has recovered slightly but is now trapped in a consolidation phase. A huge drop is expected if the supply level rises.
Since Ethereum rejected $2,780 last week, the price has remained weak as it struggles to climb back due to an extreme shrink in volatility.
While the price actions look choppy on the daily chart, it has reiterated positive actions today to where it is changing hands at $2,644. A weekly close above the mentioned rejected level could fuel more recovery.
But looking at the price actions in the past two weeks, the market is currently trapped in a consolidation phase. Aside from that, the bearish setup is still looking much intact on the daily timeframe. Although, the $2,516 level is acting as weekly support.
A drop below this weekly support could activate a massive breakdown capable of tanking the price to a low of $1,700 following a major bearish move from $4k in May. Currently, ETH’s supply level appears low.
There is currently a lack of interest in the market. If the bulls turn up with a strong commitment, they must reclaim May’s high before considering a reversal in the trend. With the look of things, the bears are much more likely to turn up in the next few days.
ETH’s Key Level To Watch
Breaking down the aforementioned weekly support, the next barrier level to anticipate for a bearish move is $2,310 along with the monthly $2,110 low. A further dip could bring us to a new yearly low of $1,904.
If ETH pushes above last week’s high, the next target level for buying would be $3,088. The $3,400 and $3,563 levels are the next resistance to watch for a slight market shift.
Key Resistance Levels: $2,780, $3,080, $3,400
Key Support Levels: $2,516, $2,310, $2,111
- Spot Price: $2,644
- Trend: Neutral-Bearish
- Volatility: Moderate
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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