Like the Bitcoin market, the spot market for the world’s largest altcoin, Ethereum [ETH], also seemed to crumble under bearish pressure. At the time of writing, the digital asset lost 27 per cent of its value over the week, with ETH trading at $1,491. In fact, ETH traded at a level that was extremely close to its $1,479 support, and if it breaks that level, the altcoin may slide further down the price charts.
Ethereum one-hour chart
Ethereum’s one-hour chart underscored the fact that the value of the cryptocurrency was gradually restricted to a higher range of $1,569 and $1,413. Over the last few days, ETH’s price has hit these extremes, as well as going back to oscillate between $1,479 and $1,519.
With the cryptocurrency price continuing to move sideways in the press timeframe, there could be a selling pressure that could pull the value of ETH down the charts to test the support level at $1,413.
The divergence between the Bollinger Bands suggested that the market was becoming more volatile. Such a rise in volatility, combined with falling prices, has contributed to the bearish turn of events on the market.
As its value has been consolidated, the Relative Strength Index has shown that the market is in a state of balance. It meant that there was an equal number of buyers and sellers on the market, both of whom kept their value stable. At press time, however, there seemed to be an uptick in the number of sellers, and this could take ETH to oversold territory.
Meanwhile, market momentum has been rising since the Awesome Oscillator turned positive, flashing strong green signals.
Crucial levels to watch out for
Take Profit: $1,418.01
The risk to Reward: 1.56
Ethereum’s short-term chart at press time indicated that the altcoin was being consolidated within a short range of $1,479 and $1,519. However, with increasing bearishness and selling pressure across the market, the coin may break its support and move to another level of $1,413. This could provide traders with an opportunity to shorten the asset.
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