- Ethereum price has fallen 17% in nearly free-fall fashion, key levels have been identified.
- ETH price has breached through both the 8-and 21-day simple moving averages.
- The safest invalidation of the downtrend scenario is if the bulls can accomplish a second attempt at the $2,030 level.
Ethereum price profit-taking consilidation has morphed into a in an all-out seller's frenzy. Still a potential knife-catching opportunity could present itself at lower targets..
Ethereum price heads south
Ethereum price has finally revealed its cards as the bears have flexed a 17% decline. In doing so, the bears have successfully breached through an ascending wedge, a major confluence signal for sidelined bears to enter the market.
In part 1, while Ethereum treaded turbulently near $1,900, On-chain analysis was used to make sense of the staggard upward progression. Crypto Quant’s Exchange Netflow Total displayed a massive downtick on exchanges. A warning was issued that a massive liquidation was on the way, but unlikely to occur until liquidity levels were tagged near $2,020.
The Ethereum price rallied into a high at $2,030 on Saturday 8/12 before it commenced the anticipated demise. Ethereum price currently auctions at $1687 as the bears have successfully reached through the 8-the 21-day moving averages. A pull back into the breached barriers could occur throughout the weekend. However, auction market theory would suggest a retracement into the liquidity levels at $1571 and $1450 as a high possibility of occurring one way or another. The Volume Profile Indicator confounds the bearish outlook as a ramping influx of selling pressure has been displayed on the 1-hour time frame.
BTC/USDT 1-Hour Chart
The safest invalidation of the downtrend scenario is if the bulls can accomplish a second attempt at the $2030 level. However, bulls looking to take a risk could look to catch a knife in the 1370-$1420 zone in the coming days with an invalidation marker at $1270. The pullback targets could be as high as $1,984.
In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team
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