Ethereum failed to register any notable increases over the last 48 hours. On the 1-day, we observed several small candles representing trading action this week. Nonetheless, many are less worried as the coin is exchanging above $1,500.
It opened the current intraweek session at $1,628 and is trading at $1,580 which may be an indication of more downtrends. Has the bullish push ended? When will it continue? Let’s go over factors that could provide more insight into the current situation.
Ethereum is Seeing a Steady Increase in Selling Pressure
According to Coinmarketcap, traders seem to be losing interest in the coin as its 24-hour trading dipped by 22%. Many may argue that this does affect the price of the asset in any way. It is important to note that such a situation results in minute changes in prices as we saw on the chart.
Additionally, the constant red candles in the image above are an indication that the bears are edging. Supporting this claim is the Relative Strength Index.
From January 10 to 23, the asset under consideration was mostly oversold. This also reflected in its value as it went on to reclaim lost levels. ETH is currently out of juice as RSI is dipping and is at 63 after almost fourteen days above 80.
It’s still uncertain if ether will recover soon, as it did yesterday. Nonetheless, this is a telling sign that the largest altcoin is due for corrections and it will happen within the next 14 days.
Added to the list of bearish indicators is the Moving Average Convergence Divergence.
ETH had a Bearish Divergence
A previous out stated that if the most recent price decline persists, a bearish divergence is impending; the 12-day EMA is cocked downwards and may intersect the 26-day EMA. As predicted, the bearish divergence took place some hours ago.
As with MACD, such interception is a sign of more downtrends. The question on every trader’s mind is when will it happen? While indicators do not specify dates, we turn to price movement. Ethereum is on its second of reduced movement. Based on previous price activities we expect a breakout from the trend within the next 72 hours.
Is it upwards or downwards?
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