The king of altcoins, Ethereum (ETH), has been stuck in a tight range due to low trading volume and negative sentiment in the market. While it may not be as frustrating as sharp price drops, prolonged consolidation is also affecting investors negatively. After periods of low volatility, big moves often follow, so it is important for investors to focus on key price levels. Today, we are examining the key levels for ETH Coin.
Ethereum (ETH) Analysis
Ethereum (ETH) has been in a downtrend since it broke above $1,950 in April. Readings from the weekly timeframe clearly indicate a downtrend, but the daily chart suggests the possibility of an uptrend.
The negativity on the weekly chart is mainly due to the failure of the $1,950 test that followed a price divergence. Such a move is often seen as a leading signal for significant drops. The failure of the resistance test and the strength of the resistance also highlight a lack of demand for buyers. Furthermore, Bitcoin‘s inability to hold above $32,400 is also affecting Ethereum negatively.
Ethereum Chart Analysis
If the downtrend on the weekly chart continues, the long-term support level around $1,450 could be retested. This line has been active since June 2022 and a possible test would mean a roughly 18% drop. Despite the downtrend in price, the weekly Relative Strength Index (RSI) shows some signs of upward movement.
While the weekly timeframe indicates a downtrend, the daily timeframe mostly provides a neutral view. The price has been following a shorter-term rising support line since December 2022. This line has been confirmed multiple times, most recently on June 15. The bounce also confirmed the $1,650 area as support.
The ETH price is now approaching the rising support line again. Whether the price bounces or breaks down will be crucial in determining the direction of the future trend. A bounce could lead to a test of $2,000, while a downside scenario could see an 11% drop to $1,650.
As the price is very close to the long-term resistance at $1,950, a decisive close above it will be needed to confirm a reversal of the uptrend.
