- Ethereum faces bearish pressure as it struggles to surpass the critical resistance level of $1,874.
- The current market analysis indicates a downward trend, with ETH potentially descending toward $1,750.
- Technical indicators and dwindling trading volume suggest a prevailing bearish sentiment in the short term.
Ethereum’s market analysis reveals a dominant bearish sentiment as selling pressure remains strong. ETH, currently trading at $1,821.24, has experienced a recent decline of 2.48%. It is worth noting that the coin has faced a substantial drop from its peak of $1,911, which was marked by a prevailing bullish sentiment earlier this week.
ETH/USD Daily price chart: (CoinMarketCap)
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The ongoing downward trend pushes the coin’s price closer to the support level of $1,780, which is a critical point. If the price falls below this level, it may enter a bearish zone and drop toward $1,750 in the coming days. On the other hand, a potential breakthrough above the $1,874 level shortly could indicate further upward momentum.
Over the last 24 hours, market dynamics have witnessed alternating bullish and bearish forces vying for control, with the bearish side currently holding the upper hand. This prevailing bearish momentum will persist in the short term as sellers dominate the market. Notably, the trading volume for the coin has significantly dwindled to $8.67 billion in recent hours, signaling a conspicuous absence of buying pressure.
The four-hour technical indicators also indicate a bearish sentiment, with the MACD displaying a negative divergence. At -18.36, the MACD line (blue) intersected below the signal line, highlighting a bearish crossover. The current RSI stands at 28, indicating an oversold market condition, potentially providing some support for buying shortly. Moreover, the 20-EMA line remains in the bearish region and resides below the 50-EMA line, indicating a higher likelihood of the ETH price experiencing a further decline.
ETH/USD 4-hour chart: (TradingView)
The signals from the Bollinger bands suggest a pessimistic perspective as the price hovers near the lower band. The lower Bollinger Band currently stands at $1,800, while the upper band sits at $1,948. These values signify a bearish market trend, supported by multiple indicators indicating a potential decline in ETH prices. Anticipate a period of limited volatility in the upcoming days as the prevailing bearish sentiment persists.
In the upcoming days, it is anticipated that the prevailing pessimistic outlook will continue to stay as Ethereum (ETH) prices persistently hover beneath the critical resistance level of $1,874. The consensus among various technical indicators solidifies this projection, indicating a probable downward trend continuation. For a potential reversal of the current bearish momentum and a possible surge in ETH prices, prompt action from the bullish investors is imperative.