The lack of buying determination makes it impossible to determine whether the price has bottomed out, indicating that there might be more selling. The price must first break through the upper part to confirm the validity of the forecast.
While cryptocurrency prices remain locked within small sideways ranges, the lack of buying determination suggests that the bears are still looking for the bottom. The following technical analysis will help investors find out where the price of Ether (ETH) will head.
ETH is trading at around USD 1,802 and has accumulated a 1.6% gain over the last 24 hours. While its daily trading volume is above USD 36.84 billion, its market capitalization is about USD 579.95 billion, according to CoinGecko.
Even though the bears are putting pressure again, they have not yet caused havoc. However, a rapid increase in volatility may cause a lot of fear in the crypto market.
The Monthly Technical Analysis of the Price of Ether
The monthly ETH/USDT chart shows a scenario where the bottom of the correction seems to be near.
The price dropped to a relevant support zone of around USD 1,750, where strong bullish momentum had already started. That area concurs with the 61.8% Fibonacci, which usually serves as support during trend retracements.
Since there is no buying determination yet, it is impossible to confirm that the price has reached the bottom. On the contrary, it seems more likely there will be some more selling.
In the monthly time frame, the ground would be clear for USD 1,125 if the price broke the support at USD 1,725. However, closer support zones on lower time frames would make it entirely feasible to stop sales.
The Weekly RSI Is Close to an Oversold Zone
The weekly ETH/USDT chart shows that the price has remained locked in a relevant support zone. Meanwhile, the RSI indicates that it might soon reach an oversold level not seen since the bearish market of 2019.
There is still no buying determination to confirm that the price will resume the higher trend, but the selling space seems to be running out. A quick search for liquidity toward the large support zone around USD 1,200 might be enough.
There Might Be a Rebound from the Current Point
To conclude, the daily ETH/USDT chart shows that the price of Ethe remains locked in a descending wedge. In the technical analysis, that figure announces that there will possibly be a reversal.
That pattern formed over a relevant support zone, while the bullish divergence occurred on the RSI. For that reason, there is a high probability that the forecast will come to pass. However, it is only possible to confirm its validity when the price breaks through the upper part.
The price of Ether will remain at risk in the short term as long as that does not happen. If the price lost USD 1,722, it would signal that there will be bearish volatility soon.
By Alexander Salazar
