ETH Price to Hit $1500 Soon?

ETH Price to Hit $1500 Soon?

Demand pressure near the 200 EMA support is protecting ETH Price from a major correction

Published 16 seconds ago

During the aggressive sell-off in mid-August, the Ethereum price showed a bearish breakdown from the support trendline of the channel pattern. Losing the support which carried a bullish trend for nine months, reflects this coin is at risk of an extended correction. However, the falling price halted at 200 EMA slope around $1620 reflecting the buyers’ push to hold higher prices. Will this support bolster the continuation of the prior downtrend?

Also Read: End Of “Goerli” As Ethereum Clients Release Updates For Holesky Testnet

Ethereum Daily Chart: Key Points

  • The Ethereum price may remain at risk of longer correction if the ETH price is unable to rebound from 200 weekly EMA
  • A breakdown below 200 EMA will trigger a sharp 10% drop in the near term
  • The intraday trading volume in Ether is $4.8 Billion, indicating a 30% loss.

Ethereum Price PredictionSource- Tradingview

Despite a high momentum breakdown from the channel pattern, the ETH sellers failed to offer a suitable follow up reflecting a lack of conviction in bears. Moreover, the weekly chart showed long-wick rejection candles at 200-day EMA as a sign of active accumulation.

The 200-day EMA is an important technical tool that segregates between the bullish or bearish sentiment in the market. Historically, this EMA slope has acted as major support or resistance and an important turning point in the market.

Considering the bearish momentum in the market, the Ether price should give a weekly candle closing above the aforementioned support to get a better confirmation for downtrend continuation.

The post-break fall may have plunged the price to $1500, followed by $1366.

Here’s how ETH Price may restore a bullish trend.

While the bearish momentum seems valid for the ETH price, the increasing demand pressure at EMA support could offer a significant bounceback. However, the potential upswing must surpass the aforementioned breakdown high of $1800 to get better confirmation of recovery.

  • Relative Strength Index: A downtick in the daily RSI slope reflects the selling momentum is active.
  • Exponential Moving Average: A bearish crossover between the 20-and-50 weekly EMAs would bolster sellers for a prolonged downfall.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.


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