fxs_header_sponsor_anchor

Is the Ethereum price in a buy-low sell-high scenario?

  • Ethereum price shows bullish divergence on the Relative Strength Index.
  • The 8-day Exponential Moving Average has rejected the first bullish attempt after the recent decline.
  • Invalidation of all uptrend possibilities depends on the $1,006 swing low holding as support.

Ethereum price shows early signs that the market bottom may not be in.

Ethereum price could decline further.

Ethereum price has traders wondering when a countertrend rally post decline will occur. Since September 12, the decentralized smart contract token has lost 30% market value. A penny-from-Eiffel style decline has occurred in the daily time frame, leaving traders to adopt a sidelined, cautious mentality.

Ethereum price currently auctions at $1305. A bullish divergence was spotted on the the 2-day chart when Ethereum tagged the previous resistance zone at $1,220. The bulls then rallied 10% into the $1,340 barrier, where the 8-Exponential Moving Average (EMA) is positioned. The EMA has rejected the first bullish attempt to rally higher, an early warning for investors with a buy-low-sell-high mentality that a secure market bottom may not be in place.

If the bulls cannot hurdle the $1340 barrier, placing an entry will be ill-advised. The ETH price could witness a further decline to wipe out July 16 liquidity level of just under $1,200. Investors should keep in mind that due to the steep decline, the safest invalidation for any uptrend move should be placed under the July 12 Swing low at $1,006.

ETH USDT 2-Day Chart

In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.