Ethereum bears rejoined the game following a slight month-long upside until mid-August. Meantime, bearish slides emerged post-climbing wedge breakdown. The reversal supported sellers to drag ETH beneath its daily 20-50-200 Exponential Moving Average.
For now, the alt hovered in a vital territory. A decisive dip under $1.513 would trigger more slumps before short-term revival potential. While writing this article, the alternative token traded at $1,503.2, dropping 9.43% within the past 24 hours.
Ethereum Daily Timeframe
The buying strength from Ethereum’s mid-June lows initiated a push beyond the 20 Exponential Moving Average and the 50-Exponential Moving Average. The alternative token witnessed a more than 73% ROI (return on investment) from July 13 lows, hitting levels near the 200-Exponential Moving Average, depicting surging buying superiority.
However, the resistance level at $1,993 catalyzed a climbing wedge breakdown. The latest plunges dragged Ethereum beneath its closes supply region. A bearish cross by the 20-50 Exponential Moving Average would see bears stretching their long-term superiority on the price chart.
Meanwhile, a decisive closing beneath the $1,500 mark might aid Ethereum to the $1,440 mark. A dip beneath this foothold might trigger a price discovery. Any bounce back from the closest support might highlight a short-term recovery towards $1,603.
The RSI (Relative Strength Index) steeply dropped beneath the midline, reflecting an enormous selling preference. Traders should look for revivals towards the support at 50 to identify bearish invalidation chances.
The A/D (Accumulation/Distribution) indicator formed higher troughs before bullishly diverging with ETH price. An extended recovery might confirm a potential accumulation period. And that may ease the present selling strength.
Nonetheless, the MACD (Moving Average Convergence Divergence) lines displayed a massive selling superiority as its lines remained primed for dips beneath the zero level.
Considering the climbing wedge breakdown dipping beneath the southbound 20-50 Exponential Moving Average, bears would target to dominate short-term trends. The possible selling/buying targets would stay as highlighted above. Lastly, enthusiasts should check Bitcoin’s tendencies. Remember, Ethereum boasts an 82% correlation with BTC.
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