Ethereum Price Movement Analysis for 17th May, 2021

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Ethereum‘s valuation saw selling pressure enter the industry, lowering the digital asset’s worth by 16 percent in just 16 hours. The sum devalued was reduced from $3,851 to $3,214. The stumbling price, however, found some power to rebound and is now trading at $3,501 with a market capitalisation of $396.78 billion.

Ethereum hourly chart

After the correction began, the asset’s price had dropped to early May lows, according to the Ethereum map. The value of ETH fell to $3,218 support, which had been high earlier in the month.

As the market rebounded from this level of support, ETH was now aiming for immediate resistance at $3,522. However, the asset will be unable to rise above this amount and may settle between $3,347 and $3,522.

Reasoning

The industry was showing signs of price convergence. Bollinger bands, who had been diverted for a long time, were now attempting to converge. This was a symbol of the market’s decreasing uncertainty. Meanwhile, the signal line that had been above the candlesticks was now trending lower, implying that the price could fall further.

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Nonetheless, dealers were attempting to get the ETH market back into balance. The relative strength index, which had been moved down to the oversold zone, was now attempting to re-establish equilibrium as purchasing demand grew. The indicator’s value was 49 at the time of publishing, almost at a neutral state, implying that the purchasing and selling pressures have now evened out. The traction, however, has stayed poor and pessimistic.

Conclusion

The Ethereum market has seen significant fluctuations, causing its value to fall. As the digital asset recovers from this decline, the stock will continue to trade at the current price level because the purchasing and selling forces have been balanced. ETH may soon challenge immediate resistance at $3,591, but it may stay below this amount.

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