Ethereum / TetherUSShort
Will ETH Continue Dropping or Can It Escape Its Negative Trend?
ETHUSDT has fallen beneath the crucial support level of $2,440 and remains trading below this important price mark. If it ends today's daily candlestick below $2,440, there's a risk it could decline to the next support level at $2,295 in the upcoming days. If selling pressure persists when the altcoin hits this level, ETH's price could further drop to around $2,130 shortly.On the other hand, if the Ethereum price manages to close today's session above $2,440, it might negate this negative outlook. To start a potential upward journey, it must first surpass the top boundary of a short-term descending channel that has developed on its chart over the last week. Closing a daily candlestick above this channel's upper boundary might lead ETH to attempt reaching the significant resistance level at $2,685. Overcoming this barrier could set the stage for ETH to ascend to $2,840 in the subsequent days.
Technicals Suggest ETH’s Bearish Trend Is Growing Stronger
Investors and traders should be aware that both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) on ETH's daily chart are indicating bearish trends. This suggests that ETH's price might continue to fall in the next 24-48 hours.
In the past five days, the RSI line has dipped below its Simple Moving Average (SMA) line, typically a sign of sellers gaining strength over buyers, potentially leading to further price declines. Moreover, the RSI line is on a downward slope, suggesting increasing dominance by sellers.
The MACD line has also moved below the MACD Signal line in recent days, indicating that ETH is entering a bearish phase. As the MACD line continues to diverge below the Signal line, ETH's downward trend might persist for at least the next 48 hours. Should these technical indicators prove accurate, and the Ethereum price closes today below $2,440, the leading altcoin could soon fall to $2,295.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.