Just like other altcoins, Ethereum too extended losses today. Over the last 24 hours, the altcoin slipped below the $1900 price level. Bitcoin also fell on its chart and major industry altcoins followed suit. Most coins over the past week and a half have been consolidating on their charts.
Following the consolidation, some altcoins attempted to rise on their charts but was soon met with the bears due to choppiness in the market. Overhead resistance for Ethereum continues to remain firm for the coin as market remains weak.
Buyers are still wary of their next step as ETH witnessed fluctuations in price level. Amidst bearish price action, Ethereum has managed to capture a bullish signal on the one day chart. If demand grows back, the coin could regain a bullish stance over the upcoming trading sessions.
Ethereum Price Analysis: One Day Chart
Ethereum was priced at $1800 on the one day chart | Source: ETHUSD on TradingView
ETH was exchanging hands at $1800 after it encountered stiff resistance at the $1900 price level. Over the last 24 hours, Ethereum lost 2.6% of its value. In the past week, ETH depreciated by almost 10%. A fall from the current price level will make ETH trade near the $1700 price mark.
Ethereum was back to trading at the price levels it last traded in the month of July 2021. Overhead resistance for the coin awaited at $1960. If demand remains consistent the altcoin could push itself to trade near the $2000 price mark.
The volume of Ethereum declined a little but the bar was red in colour. The red bar signified a bearish price action.
Technical Analysis
Ethereum displayed bullish divergence on the RSI on the one day chart | Source: ETHUSD on TradingView
The altcoin despite a fall in price noted considerable uptick in the number of buyers in the market. This signal paints optimism for the coin for the upcoming trading sessions. The Relative Strength Index noted a bullish divergence (Yellow).
This occurs when despite a price fall, buying strength increases in the market. This is a sign of upcoming bullishness. The RSI was headed towards the half-line although even at press time sellers outnumbered buyers in the market.
In correspondence to the same reading, Ethereum was pushing hard to rise above the 20-SMA. If it manages to maintain a buying strength the push can cause buyers to drive the price momentum in the market.
Ethereum registered a buy signal on the one day chart | Source: ETHUSD on TradingView
The altcoin continued to display that the bulls still haven’t completely faded. The Moving Average Convergence Divergence is supposed to read the price momentum and changes in the same. MACD underwent a bullish crossover and portrayed green signal bars.
The green signal bars are tied to a buy signal. If demand helps Ethereum, buyers can push price to $2000. The Parabolic SAR however, showed a trend reversal as the dotted lines moved above the price candlesticks. This is tied with bearishness in the market.
The Parabolic SAR however, is not always reliable while reading trend changes.
