- Ethereum price analysis turns neutral as options expiry threat looms large
- ETH/USD recovers from a quick dip to $1,823 low
- Ethereum bulls are in a wait and watch mode as the pair trades sideways
- Technical indicators are firmly settled in the neutral zone
When Bitcoin takes a dip, the altcoins follow suit. However, today’s sharp decline in BTC/USD pair towards $29,000 was not matched exactly by the second largest cryptocurrency. The price of Ethereum did declined but the pair recovered fairly quickly. Perhaps, the only concern for the ETH community now is the upcoming options expiry worth $2.5 billion.
Ethereum recovered in a quick fashion and went on to touch a high of $2,044 which inspired confidence in the bulls albeit for a short term only. The price has since come down towards $1,949 and trading sideways with little candlestick patterns. Other altcoins are also showing similar recovery signs
The support near $1,850 shows that bulls have defence near the critical pivot points as per Ethereum price analysis. The appearance of large green candle near $1,850 support also shows that large investors and traders are ready to purchase any significant dip. The technical indicators do not show any immediate reversal patterns as the pair struggles to break out of the stagnation phase.
Ethereum price movement in the last 24 hours: ETH price erodes slowly towards lower support
Ethereum continues to trade well below the 200-day moving average. The earlier support near $2,100 is now posing as a strong resistance zone with large selling pressure. The pair has shown resilience to bounce back near key support points at $1,888 and then at $1,720. The descending price channel points towards a growing weakness below the 200-day moving average.
The sharp dip towards $1,823 was short-lived. The bulls are attempting to grab the 200-day moving average but the target seems far fetched now. Looking ahead, the bulls must first focus on $2,000 psychological level. The next level to watch out for is $2,160 where the .382 Fibonacci level lies. Any extended sell-off will only bring in more chaos as the pair is already thin on volume and liquidity.
If the pair falls towards $1,800 region, the pair can re-test this year’s earlier support levels near $1,720. Ethereum price analysis shows the current price action is sideways but the bias is towards the south meaning the pair can witness decline in the short-term.
ETH/USD 4-hour chart: Bearish pressure still remains heavy
The sideways trading session must not be confusing since the price is in a gradual decline. The rebound from $1,823 did reach $2,044 but the joy was short-lived. The pair has fallen towards $1,949 quickly and left many support levels untested during the journey.
The .886 Fibonacci retracement at $1,885 still beckons the bears. The RSI remains in neutral zone at 42 and MACD is unclear about a crossover. The 1.272 Fibonacci extension of the uptrend from January lies at $1,620 and will act as another critical support if an extended sell-off does kick in.
Ethereum price analysis conclusion: ETH won’t budge until option expiry
Multiple technical indicators show that Ethereum is not in a mood for fireworks. The coin is playing it safe until the options expiry on June 25. The bullish momentum stands no chance yet since the bearish pressure is heavy on the charts due to the prevailing crypto negative environment.
The ETH/BTC pair is also struggling to break beyond the 0.077 BTC. It is headed towards lower support near the 0.0567 BTC in a search for stability.
A sharp rise in price hike can invite inflows but it remains to be seen if it will transform the long-term charts. Accumulation may be underway but the volume data has been muted for the past three weeks. In the short-term, the Ethereum price analysis shows that the upside will remain capped near $2,000.
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