Once again, the Ethereum bulls have been rejected from the $2,500 resistance level. The price of ETH/USD has fallen to touch a low of $2,151 and is currently hovering near the $2,200 region. The arduous resistance at $2,500 is proving a challenging zone to cross. The broader negative sentiment in the crypto market is further making matters worse for the bulls.
The phase of stagnation seems to be persistent as most altcoins look for direction. The descending price channel is hinting at more downturn in the short-term. Additionally, Bitcoin has also been rejected from the $37,000 level, making the outlook cloudy for other altcoins. The tight range of the price remains between $2,450 to $2,200.
The upcoming options expiry on 25th June, amounting to $1.50 billion, makes the traders stay away from taking any long positions. The risk aversion is contributing to more weakness in the price. The descending price channel is forcing the ETH/USD below the 200-day EMA. The support at $2,000 will likely help the pair ward off any immediate selloff.
The world’s second-largest cryptocurrency, ETH, seems to be taking cues from Bitcoin. The sharp decline from $2,346 to a low of $2,151 reflected the overall weakness in the market. The price has been unable to climb above the $2,900 resistance zone where the 50day moving average lies. The fall from $2,640 on the daily charts is also worrying for the bulls.
At the time of writing, the ETH/USD pair is trading near $2,210. The ‘lower high’ candlestick pattern indicates that the pair is going to face more selling pressure in the near term. As the volumes decline, the bulls will be unable to defend the $2,100 barrier. Unless the broader market support chips in, Ethereum price analysis remains neutral to bearish.
The options expiry of the second quarter is significantly higher at $1.5 billion. The figure is putting excessive pressure on the pair in the past two weeks, which saw the pair lose close to 20 percent of its value. Bulls are expecting high volatility may spark an uptrend on the charts. As per Ethereum price analysis, the daily chart movements are neutral and will largely depend on how the following week’s expiry plays out.
The descending price channel is moving fast towards the immediate support at $2,100. The following support lies at $2,000, where the bulls will likely kick in large buy orders to rescue the pair. The fall towards $2,151 also resulted in a similar response earlier today where the bulls took the pair towards $2,250 short-term resistance. The first resistance at $2,640 is posing a severe challenge for the bulls according to Ethereum price analysis.
The hawkish surprise from the US Federal Reserve is also reflecting in the falling markets. As per Ethereum price analysis, the pair is fast sliding below the 50-day exponential moving average. The RSI stands at 29, which is dangerously close to the oversold level on the hourly charts. There is a minor pivot point at $2,200 which may provide decent support, but the overall direction seems to be downwards.
The rangebound movement in the near term will be declining downwards. The $2,203 support will give way to $2,180, and then eventually, the pair will slide to touch the $2,150 region. Bears will push the pair towards $2,000, where the real test of ETH/USD will begin. Ethereum price analysis shows it all depends on the options expiry.
For the past two consecutive weeks, the ETH/USD price remains rangebound with repeated failures to cross the $2,500 resistance zone. A decisive direction still eludes the pair as heavy selling stalls any uptrend.
Ethereum price analysis shows a medium-term bearish reversal is on the cards. If a deeper correction takes place, it remains to be seen, which may take ETH price below $2,000.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on June 19, 2021 11:47 pm
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