Ethereum Price Analysis: In This Quick Decline, Will ETH Price Resist A Drop Below $1800?

The post Ethereum Price Analysis: In This Quick Decline, Will ETH Price Resist A Drop Below $1800? appeared first on Coinpedia Fintech News

With a blood bath in the altcoin market, the Ethereum price is down by 1.04% in the last 24 hours. Making a bearish engulfing candle in the daily chart, the downtrend leads the 1.58% on 8th August and warns of a deadlier correction phase. 

The Ethereum price currently trades at $1821 below the 50-day EMA and might soon approach the 200-day EMA. The sharp increase in trading volume supporting the downfall makes the downtrend more intense. 

In the 4-hour chart, the bearish obstacles become clearer. These are the 200 EMA and the supply zone at $1875, undermining the recent ETH price bullish attempt. The extensive short-term selling spree might soon challenge the $100 mark. 

Currently, the downtrend breaks under the resistance trendline of the broken falling channel pattern. However, a lower price rejection before the candle closing will increase the chances of a breather rally. 

The trapped short-term buyers can find this potential breather as an exit strategy to minimize losses. However, this can, in turn, fuel the downtrend leading to more discounted prices. 

Coming to the technical indicators, the RSI and MACD indicators present bearish sight in both 4-hour and daily charts. With the 50-day EMA and the 200 EMA in a 4-hour chart representing the selling side, a reversal breaking either EMA will unlock a bullish rally. 

Is This The Best Dip To Buy?

In case of a breather rally, the Ethereum prices can reach $1850 upon the short-term correction breakout. Moreover, the ETH price is approaching the long-term support trendline, increasing the reversal chances. Comparing the previous reversal, the ETH price is set for a 25%-40% jump. 

However, a prolonged downtrend can challenge the bullish dominance of the $1800 mark. And, in case of a $1800 breakdown, the Ethereum price can plunge to $1712.