ETH Technical Analysis: Ether At 50% Fib Level Hinges For Support
The ETH price trend takes a bearish reversal to test the 50% Fibonacci level at the $1450 support zone, teasing a downfall after the merge. The ETH price action displays a bearish reversal from $1775, breaking the 50 and 100-day EMAs and the $1500 psychological mark. However, as the selling pressure increases, the downtrend struggles to find support at the 50% Fibonacci level at the $1450 support zone. So, will the sellers drop the Ethereum prices back to the $1000 mark?
- The Ethereum prices struggle to sustain above the $1450 zone.
- The increased selling pressure warns of a fallout rally to $1000.
- The intraday trading volume in Ethereum is $24.45 billion.
Source - TradingView
ETH Technical Analysis
The ETH price displays a bullish failure to exceed the $1775 resistance level leading to a 17% drop to the $1450 demand zone at the 50% Fibonacci level. However, the buyers struggle to raise the price back despite multiple successful attempts in the last few months. As mentioned in our previous article, the price action displays a head and shoulder pattern possibility due to the recent bear cycle. Currently, the prices struggle to restart the bull cycle due to the increased selling pressure evident by the spike in trading volume. If the bearish momentum increases near $1450, the ETH prices will drop below the 50% Fibonacci level, bringing a selling opportunity for the sideline traders. They can expect the fallout rally to reach the 78.60% Fibonacci level at $1126, accounting for a 22% drop. However, a bullish reversal in Ethereum prices from the $1450 support zone will start a bull cycle crossing the psychological mark of $1500 to test $1775.
The RSI slope showcases a falling trend in the nearly oversold zone crossing below the 14-day SMA. Moreover, the MACD and signal lines display a bearish crossover, starting a bear cycle in the MACD histograms. As a result, the ETH Technical Analysis forecasts a bearish trend. Resistance Levels - $1500 and $1775 Support Levels - $1450 and $1259
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