Ethereum has once again slipped on its charts. Last week, the coin lost about 10% of its value. Bears strengthened as buyers exited the market. The technical outlook for ETH remained bearish and selling pressure increased.
Ethereum fell below its $1900 support line. In the past 24 hours, the coin has been trying to recover but the bearish price action is still strong. The bears could exert pressure to push the coins below the $1700 price.
A drop below the $1700 mark would cause ETH to decline another 19%. For the bulls to breathe a bit, ETH must be trading above the $1900 mark.
Ethereum Price Analysis: One-Day Chart
The price of the altcoin was $1793 today. The altcoin has not traded near this price level for almost a year now. General resistance for the altcoin lies at $1900, for the downside pressure to be invalidated the coin must attempt to trade above $2200.
Local support for ETH was at $1700, which can be traded below if the bears continue to lead the price action. The volume of the traded coin decreased and was seen in green. This indicates a positive trend on the chart.
Technical trend analysis
ETH was trading below the 20-SMA line, which means that the selling momentum was active and strong. This reading meant that the sellers were in charge of the price momentum.
Corresponding to this, the relative strength index was below the half line. This means that the buying force was less in the market. However, it can be noted that there is a rise in the RSI, which could be a sign that the buying force is regaining strength.
The possibility of a trend reversal cannot be ruled out as there is a bullish divergence on the chart (yellow). A bullish divergence is linked to a trend reversal.
The oscillator Awesome was still negative on the overnight chart. The indicator is meant to represent price momentum, red histograms show negative price action. Red histograms also indicate a sell signal on the chart.
The Directional Movement Index also decides the overall price movement, and it showed that -DI was above the +DI level. The average directional index (red) was above the 40 mark, which means that the current market trend is strong and the downtrend may continue in the next trading sessions.
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