ETH Consolidates Below $1,700; Correction waiting?

Posted 6 hours ago

Ethereum price analysis shows lackluster movement for the day. As the price continues to slide in a very narrow trading range for two consecutive sessions. The price is up 33% since July 26 and testing the highs of $1,792 on Thursday. Since then, ETH has been consolidating near the higher levels. However, as the weekend begins, the average trading volume is falling, contributing to the ongoing sideways movement as investors avoid aggressive buying activity near the resistance level.

At the time of publication, ETH/USD is sitting at $1,683, down 2.39% for the day. The second-largest cryptocurrency’s 24-hour trading volume fell 20% to 21,176,806,581, according to data from CoinMarketCap. The price is trading above the moving average critical crossovers, indicating the strength of the current price action. Buyers need to hold $1,700 to make another jump towards $2,000 possible.

  • ETH price edges are falling after consolidating from the previous session.
  • However, buyers are expected to remain in action as trading volume falls as the price falls.
  • A daily candlestick below $1,650 would be a warning sign for the bulls.

ETH price extends consolidation

Source: Trade View

On the daily timeframe, ETH price analysis shows that the price is moving inside the ascending channel. However, a corrective pullback is on the horizon as sellers emerge near the higher levels.

The price tested the channel’s lower trendline on July 13 and July 26 at $1,005.5 and $1,356.30, respectively. Currently, the price is trading near the support-resistance level around $1,680. This makes it a crucial level for trading.

A break below $1,680 on a daily close basis would accelerate selling towards Thursday’s lows of $1,590. It will spoil market sentiment when it happens. Also, it might drop to the lower trendline of the bullish channel at $1,453.

On the other hand, continued buying pressure would push back towards the $1,700 level. In that case, the price could test the highs of the June 7 high of $1,872, followed by the $2,000 level.

The daily RSI is holding near 59 and it is about to drop below the moving average line. Any downtrend would reinforce the bearish outlook.

Rekha started out as a forex market analyst. Analysis of fundamental news and their impact on market movement. Later, develop an interest in the fascinating world of cryptocurrency. Follow the market from a technical point of view. Researching on-chain analytics to track the market.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.

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