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On Monday, Ethereum’s market took another knock, although its falling price resulted in more inflows for the cryptocurrency. The globe’s second-largest cryptocurrency appeared to be following its downward trend on the charts and was trading at $2,462.68 with a market valuation of $285.74 billion at press time.
Ethereum daily chart
According to the daily chart, this downturn gave rise to a descending channel that marked the lower highs and lows. With the price of ETH trading around its critical support level, a breach may take the cryptocurrency to $2,038.
Is the market, however, predicting such a price swing?
The ETH market had low volatility, which was critical for keeping the price constant. This period of little activity, however, might end if the price breaks through the support around $2,432. The Visible Range indicator indicated that trade activity was increasing at its press time price level. The histogram depicted growing activity by traders as they attempted to maintain this level.
However, the market’s selling pressure remained significant. As the sellers seized control, the Stochastic RSI, which was in the overbought zone, leapt back in. Since then, the price has been in a decline, and since the RSI has remained below the signal line, the selling pressure has persisted. Meanwhile, the market’s impetus was squeezing out as bearishness was high.
Only a huge spike in the price of ETH might propel it higher on the charts. Without it, the altcoin’s price may continue to trend sideways or fall to the $2,038 mark due to increased selling pressure.
Crucial levels to watch out for
Take Profit: $2,049.42
Risk and Reward: 1.21
At the time of writing, the Ethereum market was cautious. The alt’s price was moving sideways as it awaited a change in volatility. Dealers were progressively trading at the press time level, keeping the price afloat; but, signals of mounting selling pressure might put the traders in a difficult position and cause a sell-off. ETH may find support near the $2,038 level and then rebound.