The break and retest pattern appeared finished as Ethereum prepared for a new swing low. The price is still trapped in a supply zone due to low trading volume. A huge sell-off is imminent.
Ethereum has started to show signs of weakness again after it tapped $1300 on Monday. The price dropped to a daily low of $1213 and bounced a bit to a trading price of $1230.
The price continues to respect the channel pattern, which trapped the price actions since late 2021. The sellers are showing interest again. But this time, we need to see the price drop below the $1k level to confirm a continuation.
It similarly formed a lower low and lower high pattern on the 4-hour chart, which indicates that bears are stepping back in the market. Although, the setup is steadily building up. A swing low to $900 might just be in play.
ETH bulls have been reacting quickly and strongly to price actions lately as the market nears the bottom. As a result of this, all the latest bearish signals could invalidate with just a bullish engulfing. And if such a scenario happens, the price could break out of this channel for a fresh bull run. As of now, the market is under the control of the bear.
Ethereum Price Analysis (ETH/USDT) – Daily Chart
Source: Tradingview
The price is down by 1.7% over the last 24 hours. If Ethereum’s price keeps dropping, particularly below the $1200 level, we can expect selling pressure toward $1077. Below this level lies the psychological $1000 support and then $927.
However, if the market shows strength and breaks above the long-term channel, the closest resistance to keep in mind is $1403, followed by $1500. The $1678 resistance will be the next level to watch if the price continues to increase.
Key Resistance Levels: $1,403, $1,509, $1,678.
Key Support Levels: $1077, $1,000, $927
Spot Price: $1,232
Trend: Bearish
Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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