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Ethereum may increase by 10 percent before continuing to decline.

19-Sep-2022 By: Simran Mishra
Ethereum may increas

The Ethereum price fell from the $1800 resistance 

following the recent global drop in the cryptocurrency market.

The early September recovery was completely erased by this sell-off, which also sent prices tumbling back to the $1420 monthly support level. At this support, however, the price action exhibits reversal signals, suggesting a potential relief rally.

In the 4-hour time frame chart of the coin chart, a double bottom pattern has formed. The price of Ethereum may fall back if the $1420 were lost. Ethereum's $10.65 billion intraday trading volume is a loss of 12%. Additionally, the sellers have been fighting with the buyers at this support for three days in an effort to prolong this correction. In addition, the price of Ethereum is down 2.575% today and is retesting the $1420 support.

The altcoin will crash to the psychological support of $1000 if the sellers are successful in getting a daily candle to close below the aforementioned support.

With this double bottom pattern, Ethereum might increase in value.

At the $1430 support, the four-time chart displays a smaller price rejection candle, indicating that traders are actively purchasing. A larger chance of a market reversal is also indicated by the RSI indicator's bullish divergence to base support. If this hypothesis was correct, the price of Ethereum might increase by 3.88% and challenge the double bottom pattern's neckline at $1470. If this resistance is broken in a bullish fashion, buying will be further stimulated, and the $1570 supply zone will be tested once more.

A potential reversal could show a lower high on the daily chart signalling a decreasing bearing momentum because of the accumulation of daily EMAs at this level.

The recent fall was likely merely market panic selling, nevertheless, if the price of Ethereum rises over this barrier.

Technical indicator-

Bollinger band: The declining price of Ethereum is testing the band's resistance. The relief rally hypothesis is supported by the fact that similar action has in the past led to a bullish reversal.

MACD indicator: A spread between the fast and slow lines below the neutral zone, which are bearishly aligned, signals brisk selling in the market.

Levels of Resistance: $1470 and $1520

Levels of support: $1400 and $1350

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