113 Interactions, 2 Today
Following small advances, a significant closure below Ethereum’s daily 20-SMA (red) brought sellers back into the picture. ETH’s early-to-mid August channel is projected to re-enter the spotlight as buyers regain momentum.
It is also crucial to note that the sell-off on September 7th was not even close to the one saw on May 19th. However, if buyers are not cautious, this could result in significant losses.
Ethereum was trading at $3,295 at the time of writing, down 2.7 percent in the previous 24 hours.
Ethereum Daily Chart
Before the next major market movement, ETH is predicted to find a level of support between $3,000 and $3,550. Previously, the aforementioned channel caused a period of consolidation as ETH cooled off from a run that lasted from its July lows.
Despite the recent downturn, ETH was still in a bullish shape at the time of publication. The price was trading above its 50 (yellow) and 200 (green) SMA lines.
However, in order to maintain a positive narrative, ETH must maintain a position above its 50 percent Fibonacci threshold. If this is not done, the price will be dragged towards the 38.2 percent Fib level, from which short-sellers will face significant drawdowns.
On the other hand, an immediate close above the 20-SMA would alleviate many uncertainties in the market, although a retest of $4,000 will be unlikely. Not until ETH’s indicators can overturn their bearish signals.
The majority of the ETH indicators produced bearish settings. The MACD’s fast-moving line passed beneath the Signal line. This prepared the path for further defeats all the way down to the half-line. Meanwhile, market buying power was constrained as the Awesome Oscillator made two peaks but failed to go higher.
At the time of publication, the AO was on the verge of closing below its midpoint – a situation that typically prompts short selling.
Finally, the RSI appeared to dismiss such pessimistic forecasts. The index remained close to balance and had not succumbed to downward pressure.
Because there seems to be some buying pressure, ETH has the ability to mitigate incoming losses. As a result, the price is projected to hold between $3,000 and $3,550 before succumbing to a larger trend.
The RSI, MACD, and Awesome Oscillator were all trading above their half-lines, indicating that there was considerable risk ahead. If these indications continue to trend downward, the world’s second-largest digital asset will suffer a few more setbacks.
To maintain a positive premise, ETH would need to trade above $3,000.