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Selling of ETH at $1400 is Encouraged by Several Resistance Levels

22-Aug-2022 By: Sudeep Saxena
Selling of ETH at $1

From mid-June to August, the parabolic recovery in the ETH/USDT 

pair drove prices up by 101% and created a local peak at $200. The coin price also experienced multiple pullbacks during this bull run, which refuelled the bullish impetus for additional increases.

Higher price rejection at the 50-day EMA suggests that prices will remain stable below $1600. The 20-and-100-day EMAs' bearish crossover will make the current downturn stronger. Ethereum's $18.6 billion intraday trading volume is a loss of 2.89%.

The ETH price reversed from the $2000 resistance level on August 14th, indicating a sporadic price correction. The recent information that the US Fed intends to raise interest rates by 0.75% in September increased the bearish momentum. As a result, over the past week, the price of ETH has decreased 21% and fallen below $1775, its previous swing low. The coin price is currently up 3.3% and is expected to test potential resistance at $1600.

Further discouraging purchasers is the 50-day EMA's movement at the same level. The price of ETH might tumble 12.5% to the psychological level of $1400 if by day's end the altcoin provides a candle closing below the $1600 mark. Contrarily, a positive breakout from the $1775 resistance diminishes the viability of this bearish argument and presents a breakout potential from the swing high resistance of $2000.

Technical indicator: 

Relative strength index. A sharp change in market sentiment is indicated by the daily-RSI slope's plummet below the neutral line from the overbought areas.

Vortex indicator: Before mid-July, the VI+ and VI- slopes last shown a bearish alignment. As a result, a bearish crossover between these slopes is an alert to sell for interest traders.

$1600 and $177 - Resistance level

$1400 and $1275 - Support Level

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