Ethereum’s Trading Price Struggles at $1790 Despite Attempting to Trade within $1800 Range
At the time of writing, the trading price of Ethereum (ETH) had reached $1790. Despite attempting to trade within the $1800 price range, the altcoin encountered selling pressure, resulting in its depreciating value. Currently, Ethereum‘s overhead resistance is at $1810. If the altcoin surpasses this resistance level, it has the potential to trigger a rally in its price.
If the present price level experiences a decline, Ethereum is likely to decline further to $1750 before eventually reaching the $1700 price mark. The recent trading session indicated a decrease in volume, indicated by the red color, signifying a weak buying strength.
Technical Analysis
Throughout this month, Ethereum experienced a decline in demand, resulting in reduced buying strength. The Relative Strength Index (RSI) dropped below the midpoint line, suggesting a decrease in demand and an increase in selling pressure on the chart.
Additionally, the price of Ethereum fell below the 20-Simple Moving Average (SMA), indicating that sellers were dominating the market’s price momentum. Given that Bitcoin’s price movement remains uncertain, several altcoins, including Ethereum, have followed a similar price trajectory.
However, if Ethereum gains broader market strength, there is a possibility that demand could return, causing ETH to surpass the 20-SMA line and potentially climb higher. Due to the absence of demand, ETH did not exhibit significant buy signals. The Moving Average Convergence Divergence (MACD), a tool used to indicate price momentum and potential trend reversals, showed small green histograms that do not provide conclusive buy signals at this point.
The Bollinger Bands, which measure price volatility and potential fluctuations, have maintained a parallel shape. However, they displayed slight convergence, suggesting that ETH may trade within a relatively stable range without substantial price fluctuations.
To reclaim the $1800 price level, it is crucial for buyers to re-enter the market at the current price level. Their participation is essential for Ethereum to regain strength and potentially push the price higher.
Quotes from Experts
According to several experts, the current market situation could help Ethereum gain momentum in the longer run. Ethereum has a strong performance record and a lot of technological advancement, which could work in favor of its price increase.
“Despite current price headwinds, Ethereum still has a strong long-term outlook as we approach Ethereum 2.0. Its transition from proof-of-work to proof-of-stake could mark a significant shift toward greater efficiency, scalability, and use-case options,” said Paolo Ardoino, Chief Technology Officer at Bitfinex.
Conclusion
Ethereum’s price movement currently remains uncertain. However, if Ethereum gains broader market strength and buyers re-enter the market, ETH could potentially climb higher. Its strong long-term outlook could also work in favor of its price increase in the future.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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