In the last few days, Ethereum price eclipsed the $2600 mark; however, it was unable to carry on its bullish rally and has dropped down to below $2160. While the price at press time holds just below $2160, the bearish pressure is very strong, and the price may fall further in the immediate future.
The broader cryptocurrency market enjoys a bearish sentiment across the last 24 hours, with most major cryptocurrencies recording a loss across the timeframe. Major Players who recorded a loss include BNB and DOT that record a 16.62 and a 14.47 percent decrease, respectively. Meanwhile, Bitcoin and Ethereum record a 10.42 and a 12.13 percent decrease, respectively.
Technical indicators for ETH/USDT
Across the technical indicators, the MACD shows strong bearish momentum according to the dark red histogram. Until 12 am today, the indicator was showing bullish momentum for Ethereum price action; however, since then, the indicator exhibited a bearish reversal as the 26-EMA overtook the 12-EMA. At press time, both EMAs continue to fall, with the 12-EMA diverging from the 26-EMA.
The RSI is currently trading in the neutral zone a little above the 44.00 mark and does not issue a signal. The indicator has been trading in the neutral zone for the past week. Since yesterday the RSI is steadily dropping towards the oversold region with a smooth slope suggesting high bearish momentum.
The Bollinger bands are currently wide but will converge in the immediate future due to the presence of dark red candlesticks. The bands’ convergence suggests a decrease in volatility for the Ethereum price. Meanwhile, as the price is consolidating well below the bands’ mean line, the bands will be leaning downwards for the next few candlesticks.
Overall the 4-hour technical analysis issues a sell signal with 14 of the total 26 major technical indicators suggesting their support for a bearish movement. On the other hand, only two indicators issue a buy signal suggesting a bullish retracement. Meanwhile, ten indicators sit on the fence, issuing no support for either side of the market.
The 24-hour technical analysis does not share this sentiment and remains neutral with a bullish bias. The analysis shows 18 indicators split evenly into neutral and bullish positions while eight indicators suggest a bearish price action across the timeframe.
Traders should expect Ethereum price to continue its free fall as the price returns to the $2000 mark. The short-term technical analysis is bearish, while the technical indicators such as the RSI still show room for further downwards movement. Ethereum price action is currently facing strong selling pressure, and coupled with the bearish market sentiment; ETH can be expected to fall to the $2000 psychological level before finding strong support.
Conversely, if the buyers defend the $2200 support level, ETH may rise to the $2400 mark again. However, the sharp bearish pressure would result in another rejection, and the price action would stagnate.