During the intense sell-off in August’s third week, the Ethereum coin showed a bearish breakdown from the support trendline of the channel pattern. Losing the footing which carried a bullish recovery for nine months, reflects this altcoin is a risk of an extended correction. From the last upswing of $2028, the ETH market value dropped by 18.8%, and currently trading support near $1600-$1570. Will the buyer replenish enough bullish momentum for a counterattack?
Also Read: ETH 2.0 Deposits Hit ATH As Perpetual Futures Open Interest Dips
Ethereum Daily Chart: Key Points
- The crypto traders are witnessing high demand pressure at $1600 wavering close to 200-weekly EMA
- Ethereum fear and greed index at 34% reflects a negative sentiment among traders
- The intraday trading volume in Ether is $4.7 Billion, indicating a 10% loss.
Source- Tradingview
The weekly time frame shows the falling ETH coin has found suitable support near the $1600-$1577 demand zone. This level backed by a 200-day EMA and a 50% Fibonacci retracement level indicates a high area of interest that can rebound the price higher.
By the press time, the Ethereum price trades at $1647 and shows lower price rejection candles at the $1600 mark, as a sign of potential bounce. A bullish breakout from a local resistance of $1700, will bolster the potential upswing by a 6-7% rise and retest the breached trendline of channel pattern.
If the coin price shows sustainability at the aforementioned trendline, it would likely fall with recuperated bearish momentum and possibly break 200 EMA at $1600. This breakdown will signal the resumption of the downward trend and may push the altcoin to the $1450 mark.
The $1450 support currently in close contact with a support trendline carrying a long-term uptrend indicates the significant support for holders to keep an eye on.
Is the Bullish Trajectory of Ethereum Coin Still Intact?
As we mentioned in a previous Ethereum article, this second-largest cryptocurrency could be riding the 3rd wave of Elliott wave theory. In theory, the 3rd wave is usually the longest and most dynamic offering a great investment opportunity. With the overall perspective for ETH remaining bullish, a dip opportunity at a 200-weekly EMA or support trendline can be a great opportunity to accumulate.
- Relative Strength Index: A downtick in the weekly RSI slope reflects active bearish momentum.
- Exponential Moving Average: The weekly EMAs(20, 50, and 100) near $1800 create a high supply zone for traders.
