Ethereum [ETH] Price Analysis: Bearish Momentum Persists
Ethereum [ETH] has been facing a bearish trend on the daily chart, with the lack of buying pressure raising concerns among market participants. The formation of an inverse head and shoulder pattern in the 2-week timeframe, however, presents a bullish opportunity. If the pattern breaks out to the upside, Ethereum could potentially reach $12,000 in the near future.
On the daily timeframe, the sentiment remains bearish as the price has dropped below the $3.4k support level. The momentum suggests further losses could be on the horizon for Ethereum. The recent price action has failed to maintain the short-term range, indicating a shift in market dynamics.
The 1-day chart for Ethereum shows a clear bearish structure, with the price falling below the crucial $3,509 level. This drop was accompanied by a decline in the Relative Strength Index (RSI) below the neutral 50 mark. Additionally, the On-Balance Volume (OBV) has been ranging for the past two months, signaling a lack of significant buying pressure.
The former support zone at $3.4k has now turned into a resistance level, further confirming the bearish outlook for Ethereum. The OBV data also reflects a lack of buying interest, as the price failed to make significant gains despite testing the $4k resistance level.
Moving to the 4-hour chart, key support and resistance levels are highlighted at $3,555 and $3,101 respectively. These levels will play a crucial role in determining the next direction for Ethereum’s price movement. In the lower timeframes, the $3,314 level could act as a temporary support, potentially leading to a price bounce of 3.4%-5.8%.
However, to shift the daily timeframe bias to bullish, a significant influx of buying pressure is required. The current market conditions suggest that bullish hopes may remain subdued in the absence of such buying interest.
In conclusion, Ethereum [ETH] continues to face bearish momentum, with key support and resistance levels dictating the next price moves. Market participants should remain cautious and closely monitor these levels to navigate the current market environment effectively.
Disclaimer: The information provided in this analysis is purely the writer’s opinion and should not be considered as financial, investment, or trading advice.
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