Bouncing off a multi-month low earlier this month, Ethereum retraced for three weeks to retest crucial breakdown support as resistance last weekend. It saw a rejection and now looks set for a drop.
Ethereum’s market structure is still looking much more bearish on the short-term trend following a lower low and lower high move from $4k.
Although it has taken a short break in bearish as it went through a nice retracement over the past weeks, unfortunately, it faced rejection and stopped buying after retesting the crucial $2,810 resistance last week.
The price currently appeared weak following a drop from this crucial resistance level that broke down as support during the last leg down. More drops can be expected if this resistance continues to suppress buying.
In fact, this drop may lead to another major sell-off if the $2,100 level fails to provide support. As of now, the selling volume appears low. If the buying volume increases, ETH may advance higher towards the $3k level before resuming bearish at full speed.
A recovery above the July $3,590 resistance could trigger a reversal in the existing bearish trend. From a technical standpoint, Ethereum will likely continue to swing lower until it establishes a base support.
ETH’s Key Level To Watch
While anticipating a drop, the potential supports to watch are $2,516, $2,310 and the monthly $2,111 low respectively. A collapse through all these supports could dip the price to $1,900 and potentially $1,700.
If ETH pushes strongly above the $2,810, the higher resistance level to watch for a test is $3,080 – last month’s initial breakdown level. There’s also resistance at $3,400 in case of further rise.
Key Resistance Levels: $2,810, $3,088, $3,400
Key Support Levels: $2,516, $2,310, $2,111
- Spot Price: $2,745
- 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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