Ethereum wants to escape consolidation. Watch these levels.

ethereum price analysis
  • Ethereum must finish the day above $1,800 in order to prevent losses from reaching $1,700.
  • Between $1,905 and $1,958, the IOMAP model has identified a significant barrier.
  • If support at $1,700 fails, a decline to $1,300 would not be implausible.

Ethereum was able to defend the $1,700 support level on Thursday, following a global reversal of the week’s early gains. The pioneer smart-contracts coin rose beyond $1,800, but the upswing faded when the 50 Simple Moving Average (SMA) was reached on the four-hour chart.

In general, Ethereum is accumulating losses alongside other alternative cryptocurrencies. The aim among bulls is to safeguard Ether’s downside while concentrating on climbing the ladder over $2,000

How Long Will Ethereum’s Price Stay In a Holding Pattern?

As we moved into the month of June, the stochastic RSI oscillator showed a downward trend, moving out of the overbought region. Within a short period of time, there was an extraordinary oversupply of ether, which made it difficult to recuperate. Bears appeared to have a firm grasp on the market when a tiny negative divergence was spotted on the chart (below). As a result, it was anticipated that the rate of additional drop would quicken in the upcoming sessions.

If the price of bitcoin stays over $1,800 for at least four hours or a day, then the market may not drop any lower than $1,700. In the meantime, the Bollinger Bands indicated that a phase of consolidation was currently taking place, with the bottom limit marked at $1,700 and the higher limit highlighted at $2,000.

With Ethereum’s price moving below the middle boundary and the 50 SMA, the odds may be in favour of a long-term downtrend.

Source: TradingView

If the strong buyer congestion zone at $1,700 breaks, the price of Ethereum could fall to $1,300. Still, possible cushions of $1,680, $1,480, and $1,360 are already in place to take the selling pressure.

On the bright side, if Ether broke through this barrier, it may rise above $2,000 by a large amount. Traders should also be aware of the likely delays that will happen at $2,100 and $2,400.

Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.