Following market sentiment, Ethereum continued to trade convincingly below the crucial $1200 level since the price declined heavily over the past several weeks. It has tried to recover above this level, but the pressure was not enough to increase the price.
Over the past few days, Ethereum saw an increase of about 7% after establishing weekly support at $1074. The price touched the crucial $1217 level yesterday but has dropped a bit today. The price could drop from here if this crucial level continues to suppress buying pressure.
The last five-day volatility appears moderate on the daily chart, indicating that the buyers are showing interest in the market. The correction might last for a while. However, the bulls still need to show a strong commitment to keeping the market in their favor.
Considering the recent drops in Bitcoin’s price, which also affects ETH price, we can expect it to shed more loss if the global market continues to decrease. The setup technically looks like a retest, so the price could roll back to the weekly support or even to a lower level.
If we look at the daily candle from where the price recovered to ($1350) on November 10, we would agree that it has witnessed a series of rejections with choppy price action.
As long as Ethereum continues to trade below this crucial resistance, there’s a high chance for bearish continuation. Despite the past days of increase, Ethereum is still in a bearish condition as more sell actions could be underway.
Ethereum Price Analysis (ETH/USDT) – Daily Chart
The ETH bears are defending the crucial resistance level of $1200 well. Above it, they’ve also held resistance at the $1403 level, which lies around the channel’s resistance. There’s also resistance at $1509 and $1678 in case of a breakout.
However, if the cryptocurrency continues to lose momentum, here are the key support levels to watch on its way down. The closest support here is $1077. There’s also support at $1000 if the price keeps dropping. The following support is $927.
Key Resistance Levels: $1,403, $1,509, $1,678.
Key Support Levels: $1,077, $1,000, $927
- Spot Price: $1,200
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.