Bearish Sentiment Increases as ETH Breaks Down Below Crucial Support

Share Article
In Brief
  • ETH has broken down from a symmetrical triangle.

  • There is support between $1400-$1450.

  • ETH/BTC is completing a fourth wave pullback.

  • promo

    BIT Launchpad: Up To 3,500 FREE BIT. Don’t Miss The Beat. Join Now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Ethereum (ETH) has been moving downwards since it reached an all-time high on May 12. So far, it has reached a low of $1,750.

Sponsored



Sponsored

Technical indicators in multiple time-frames are bearish, supporting a continued fall in price.

Long-term ETH levels

ETH has been moving downwards since May 12, when it had reached an all-time high price of $4,340. The decrease has been swift, so far leading to a low of $1,750 on May 23. 

Sponsored



Sponsored

Technical indicators are decisively bearish. The MACD & RSI are falling, the latter crossing below 50. The Stochastic oscillator has already made a bearish cross (red icon)

The main support is at $1,400. This is the previous all-time high resistance area, which has been validated once after the ensuing breakout.

Chart By TradingView

Ongoing breakdown

The daily chart aligns with the bearish sentiment.

ETH has broken down from a symmetrical triangle on June 17 and has been moving downwards since. 

Currently, it is in the process of falling below the $1900 support area. In addition to this, yesterday’s close was the lowest since March. 

Finally, technical indicators are providing a bearish outlook. The Stochastic oscillator has made a bearish cross and both the RSI & MACD are falling. The former is below 50 while the latter is negative.

The next support level is at $1450, coinciding with the previously outlined long-term support level.

Chart By TradingView

Cryptocurrency trader @TheEuroSniper outlined an ETH chart, stating that the token could continue consolidating for a while near the $1500-$2000 region. This is in line with readings from both the weekly and daily time-frames.

Source: Twitter

ETH/BTC

The ETH/BTC pair provides a similarly bearish picture. It has been moving downwards since creating a lower high on June 9.

Similarly to the USD pair, technical indicators are firmly bearish. The RSI has fallen below 50 while the Stochastic oscillator has made a bearish cross.

The wave count indicates that this is a fourth wave pullback (orange). A very likely level for the bottom of the move would be at ₿0.05. This would give the A:C sub-waves (black) a 1:1 ratio. In addition, it would reach both the 0.618 Fib retracement support level and middle of the parallel channel. 

Afterwards, an upward movement would be likely.

Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Bit2Me ICO JUST STARTED! Buy B2M token now.

Buy now!

BIT Launchpad: Up To 3,500 FREE BIT. Don't Miss The Beat.

Join Now!