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ETH price action forecasts a bleak future as the selling pressure grows, warning of a fall below the psychological mark of $1500. A negative reversal to test the buyers at the $1427 horizontal zone is more likely as the Ethereum (ETH) price struggles close to the $1600 resistance level. Additionally, a rising bearish pattern on the daily chart foreshadows a significant corrective phase in the coming days. So, should you think about taking early exits or keep making purchases above $1500?
Key Points:
- The increased selling pressure at the $1600 level results in an evening star pattern.
- The breakdown of the $1427 support level can drop ETH prices to $1259.
- The intraday trading volume in Ethereum is $9.88 billion, indicating an insignificant rise of 13%.
Source -TradingView
ETH Technical Analysis
On the daily chart, the ETH prices show a fight for control over the $1600 level of support, hinting at a likely negative move. Furthermore, the evening star pattern near the mentioned resistance level has an enhanced negative impact on the underlying sentiments. Additionally, the higher price rejection candles at the 50-day and 20-day EMAs indicate additional selling pressure under the surface. Further, the falling trading volume trend suggests a buyer's interest decline. In the bigger image, a head and shoulder design with a neckline at the $1427 horizontal zone is developing. And given that the probable reversal would complete the bearish pattern, a significant drop in the ETH prices is possible. The price may fall to the next support level at the $1259 level on a bearish collapse of the $1427 horizontal zone. However, if bulls can maintain the price of Ethereum fluctuating around the $1427 demand zone, a sustained lateral move below $1600 is probable.
Technical Indicators
The MACD indicator shows a bullish crossover possibility projecting hope for buyers. However, the ETH prices anticipate a turnaround from the $1600 support level, and the RSI indicator replicates the bullish failure. Resistance level - $1600 and $1730 Support level - $1427 and $1259