Skip to main content

Ethereum Technical Analysis: ETH Slides Over 8% Amid Downward Market Pressure

Ethereum Technical Analysis: ETH Slides Over 8% Amid Downward Market Pressure

In the ever-volatile world of crypto assets, ethereum has exhibited a notable decline, with an 8.1% decrease in price over the past 24 hours. Technical indicators and chart patterns suggest a bearish sentiment in the air, urging traders to navigate with caution.

Ethereum

Ethereum’s (ETH) price hovers between $2,056 to $2,255 after a tumultuous 24-hour trading session ranging from $2,148 to $2,392 per unit. Ether’s market capitalization stands at $265 billion, with a significant trading volume of $30.91 billion, reflecting the high stakes and intense activity in the ETH market on Wednesday. These numbers set the stage for a deeper dive into the technical factors influencing ether’s price action.

Oscillators provide a glimpse into the momentum and potential reversals in price trends. The relative strength index (RSI) at 46.4 and Stochastic at 56.6 both indicate a neutral to bearish market sentiment. Meanwhile, the commodity channel index (CCI) and the average directional index further corroborate this neutrality. However, similar to BTC’s charts, both the momentum and moving average convergence/divergence (MACD) level lean towards negative sentiment, hinting at bearish undertones amidst the prevailing uncertainty.

Ethereum chart by TradingView

Moving averages (MAs) paint a picture of trending market behavior over various time frames. The shorter-term exponential (EMAs) and simple moving averages (SMAs 10, 20, and 30) predominantly suggest a negative undertone, echoing the immediate bearish sentiment in the market. In contrast, the longer-term averages (50, 100, and 200) tilt towards a positive outlook, indicating a possible bullish recovery in the long run. This dichotomy emphasizes the market’s volatility and the differing perspectives based on time horizon.

On Wednesday, the 1-hour ETH/USD chart presented a marked downward trajectory, signifying a substantial sell-off. This trend suggests traders should wait for signs of market consolidation or bullish reversal patterns before engaging, to circumvent the intense downward momentum. For those exiting, it’s crucial to limit losses as the significant declines breach prior support levels, indicating a sharp downturn.

Echoing the short-term chart, the 4-hour ETH/USD graph shows a distinct bearish trend characterized by extended and notable falls. The focus here is on achieving market stability and spotting bullish reversals within a 12 to 24-hour period before making entry decisions. Exit strategies should leverage the conditions of being oversold following the swift downturn, with an attentive watch on support thresholds and market pullbacks.

The daily ETH/USD chart offers a wider lens, illustrating alternating bullish and bearish days culminating in the considerable decline observed in the previous day. This pattern denotes heightened market volatility with a strong lean towards bearishness. Entry strategies should be judiciously made, looking for definitive bullish reversal indications over an extended period. Across all three time frames, the prevalent bearish sentiment underscores the importance of rigorous risk management and strategic foresight in these fluctuating market conditions.

Bull Verdict:

Despite the prevailing bearish trends in the short term, Ethereum’s market performance shows resilience through the favorable longer-term moving averages and the neutral standings of key oscillators. If traders identify strong bullish reversal patterns and the market reacts positively to external stimuli or news, there could be a substantial recovery on the horizon.

Bear Verdict:

Current technical indicators and chart patterns heavily lean towards a continued bearish outlook for ethereum. The dominance of negative signals in both short-term moving averages and oscillators, coupled with significant downward trends across various time frames, suggest the market may not have found its bottom yet.

Register your email here to get weekly price analysis updates sent to your inbox:

What do you think about ether’s market action on Wednesday morning? Share your thoughts and opinions about this subject in the comments section below.



from Bitcoin News https://ift.tt/mIPlKoa
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more