Ethereum Price Movement Analysis for 7th June, 2021

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After rebounding off support at $2,584, the price of Ethereum has been gradually rising. Within a day, the price increased by 9.36 percent, and ETH was trading at $2,784.

As Ethereum moves through this price range, there may be a brief period of consolidation before resuming a negative trend in the short term market.

Ethereum hourly chart

The chart above shows that the $2,584-level was tried twice and resulted in a similar type of break out. Because the price has been trading near to resistance around $2,792, it may remain at this level until selling pressure rises up.

As a result, the value of ETH may lose support and fall to $2,700.

Argumentation

With the price of Ethereum climbing over the last day, the market has taken a positive turn. The 50 moving average was below the price sticks, indicating an upward going market. However, because ETH was replicating a past trend, a price drop was also on the horizon.

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The Visible Range indication indicated that there was no active trading at the current price level. If the price breaks through support, it might fall below the $2,700 level, where trading activity was stronger. In addition, the signal indicated that this level was a point of control in the present period.

Interestingly, the Directional Movement Index was also indicating that the +DI was on the verge of crossing below the -DI, which might increase market bearishness. If this were to occur, it would indicate an increase in negative pressure in the ETH market, perhaps leading to a sell-off.

Crucial levels

Entry-level: $2,750.67
Take Profit: $2,705.66
Stop-level: $2,788.94
Risk and Reward: 1.18

Conclusion

The Ethereum market is now optimistic, but there are indicators of a trend reversal brewing. With the asset trading near support around $2,763, a break below this level might start a sell-off, and the price might fall to the next trading area at $2,700.

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