Price analysis shows a rebound in today’s session following the bloodbath in the previous session. Ethereum price is currently trading below the $1,650 mark, and it is struggling to make gains above the mentioned level. The longer ETH stays below this level, the more selling pressure will be.
ETH price is in a downtrend
On the weekly chart, Ethereum price analysis is indicating a bearish momentum.
The price of ETH closed above $2,100 for the first time in the week ending March 2021, and since then the price has risen to $4,867.
However, the price broke the support more than once during the year, reached the $2000 level in May 2022, and started declining to test an all-time low of $898.
Last week, the price also tested the $2000 level once more, but was unable to stay above that level. ETH is facing significant selling pressure near the level.
The price is facing a bullish obstacle near the 20-day exponential moving average, along with the 38.6% Fibonacci retracement, which will act as immediate resistance for this week.
Now, if the price on the weekly chart closes below the previous bullish candle, and forms a bearish engulfing pattern (the engulfing selling pattern that indicates a price decline in the future), there is a high probability that the price will drop to the bottom of the last swing low to $1,230.
On the daily chart, ETH price gave a breakdown of the “rising wedge” pattern, indicating a broader weakness.
Volumes are below the average line and are falling, with the price moving upwards, which indicates concern. When the market is rising while volume is declining, it is not the big money that is buying, rather it is more likely that it is slowly getting out of positions.
The closest support is the swing low, which is at $1,570, while the nearest resistance is at $1,765.
There is a high probability that the price will break a lower level. An opportunity to “sell on the rise” is the best course of action to follow.
On the other hand, the daily candle above the $1,760 level can invalidate the bearish expectations. The price might rise towards $2,000 once more.
Source: COIN Gape
