Yesterday, the Ethereum price closed below the $1700 mark, indicating a stronger downward movement that could push the market cap down by 15%.
Key technical points:
- The ETH market price has fallen by 6.45% in the last 24 hours.
- The price trend indicates a bearish resolution of the descending triangle pattern.
- Ether’s 24-hour trading volume was $17.49 billion, up 36%.
Ether’s performance so far
The technical chart of ETH/USD shows that the downtrend gained momentum after breaking the $2,200 level. The selling wave does not seem to stop and continues to be influenced by the resistance line. The trend line forms a descending triangle pattern with the bottom at the $1,700 mark.
Technical analysis of Ethereum
The technical chart of ETH/USD shows a sustained downtrend within a descending triangle with a low at $1700, but the increased selling pressure has created a bearish candle that could close below this level. In addition, the increased trading volume highlighted on the chart indicates a large influx of sellers, possibly characterized by panic selling. The key simple moving averages: 50 (red), 100 (orange), and 200 (black) days remain in a bearish trend and downtrend, having recently crossed the red and orange lines.
Also, note that the MACD and signal lines are trending up, but the bullish range is narrowing, indicating the possibility of a bearish crossover. The RSI indicator shows a downward trend and is about to cross the oversold threshold, as it falls below the 14-day SMA (indicated by the yellow line). As a result, the technical indicator shows increased selling pressure and warns that the ETH price will continue to decline.
Upcoming trend
If buyers fail to reverse this trend in the near future, a decline would lead to a 15% market cap depreciation, bringing Ether’s market cap to $1,400.
Resistance levels: $1700 and $1900
Support levels: $1500 and $1400