The bulls have continued to suffer a loss on a monthly scale as the market recently resumed a sell-off. This puts Ethereum in a more bearish state as it declined by 45% in four months. It is redistributing for a huge drop.
ETH saw a slight rejection after almost reclaiming an eight-month low during the recent meltdown. The rejection has brought a mini retracement in the market and the sellers took a short breath while the buyers pushed to the $2,320 level yesterday.
This level has prevented further push as the buyers now appeared stalled over the past hours, although there’s still room for a retracement if they further show commitments daily. $2,400 is a close resistance to watch.
Rejections around this mentioned resistance could trigger a drop in the near term. The previous monthly low may pose a threat to the bears on the way down before successfully pulling through to the $2,000 range.
Currently, ETH bulls are finding it difficult to gain traction due to the low level of demand in the market. If they defend the previous low well, we may see a bounce back with a double-bottom pattern daily.
But as it stands now, the bears have an upper hand and we can expect a bigger drop when the supply level rises.
ETH’s Key Level To Watch
The main selling obstacle to watch right now is $2,111 – August’s low. Breaking this low could trigger a collapse to the $1,904 level, a pullback support last November. Below it lies last October’s $1,750 high and the $1,650 level.
A bounce above a cracked $2,400 level could bring a retest at $2,595 and to the crucial $2,810 support-turned-resistance, where it recently initiated a drop.
Key Resistance Levels: $2,400, $2,595, $2,810
Key Support Levels: $2,111, $1,904, $1,750
- Spot Price: $2,298
- 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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