On June 5, sellers pulled the price below the moving averages, which accelerated the selling. As a result, the ETH/USDT pair plummeted below the resistance line of the wedge pattern.
Ethereum experienced a bearish trend, falling below $1,860 against the US Dollar. Several indicators suggest further downward movement, potentially reaching as low as $1,720. Ethereum struggled to surpass the resistance at $1,920 and subsequently began a significant decline below key support levels at $1,900 and $1,880. This downward movement mirrors the bearish sentiment observed in Bitcoin.
Ethereum faced selling pressure, resulting in a dip below the important support level of $1,840. Additionally, the hourly chart of ETH/USD witnessed a break below a bullish trend line connecting with support around $1,900. As a result, the price declined by over 3% and approached the support level at $1,775.
ETH hit a low of $1,778 before entering a consolidation phase in an attempt to recover from its losses. Gradually, there has been an upward movement, surpassing the 23.6% Fibonacci retracement level from the recent decline between the swing high of $1,915 and the low of $1,778. Despite this progress, Ether is currently trading below both the $1,865 level and the 50-hourly Simple Moving Average.
Ethereum is currently facing a crucial resistance level at $1,830, which could potentially hinder its upward momentum. However, if it manages to surpass this level, the next significant resistance can be found at $1,850. A successful breach of these resistance levels could propel Ethereum towards $1,900, with the next resistance positioned near $1,920. Breaking through this level might push the price towards $1,965, and further gains beyond this zone could pave the way for Ethereum to approach the $2,000 resistance level.
On the other hand, if Ethereum struggles to surpass the resistance at $1,840, it may experience further downward movement. The initial support level on the downside is around $1,775, followed by a more significant support zone near $1,740. A break below the $1,740 support could potentially lead to a decline towards the $1,700 support level. Subsequent losses might push the price towards the $1,660 level, and potentially even as low as $1,640.
Based on price analysis, the market capitalization of ETH is approx at $218,283,840,563. The 24-hour trading volume is expected to be $8,693,526,427.
KEY LEVELS :
RESISTANCE LEVEL : $1,840-$1,880
SUPPORT LEVEL : $1,780-$1,740
What impact does the sell pressure have on Ethereum? Is there a likelihood of ETH surpassing $1800 this week? Are concerns arising from the bull trap indicating a possible significant correction? Would it be advisable to sell or hold? I'd appreciate your insights and opinions on these matters.
Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.
