Bulls couldn’t take control of the market, and after touching a high of $1,871 on 23 May, the ETH/USD pair is moving in a bearish trend, touching a low of $1,762 today in the early Asian trading session.
On the hourly chart:
- ETHUSD is under bearish pressure after a decline below the $1,800 handle with immediate targets of $1,750 and $1,700.
- The bearish harami pattern is below the $1,871 handle, signifying the end of a bullish phase.
- The relative strength index is at 40.11, indicating weak demand for Ether and a continuation of the selling pressure in the market.
- The CCI is giving a neutral signal, meaning that the Ethereum price is expected to remain in the consolidation phase in the short-term range.
- ETH price is now trading below the 100-hour simple and 200-hour exponential moving averages.
- The Ethereum price opened bearish this week.
- The average true range indicates low market volatility.
ETH Bearish Reversal Seen below $1,871
On the daily chart:
- The ETH price is trading just above its pivot level of $1,780 and is moving into a mild bearish channel.
- The price is about to break its classic support level of $1,774 and its Fibonacci support level of $1,778; further supports are $1,742 and $1,755.
- The horizontal support of the channel is broken.
- The short-term range is expected to be mildly bearish.
- Ethereum price is ranging near a new 1-month low.
Ethereum price continues falling after it failed to clear the $1,900 resistance.
After hitting the $1,871 barrier, the ETH price failed to gain pace against the US Dollar. We can see major downside moves as the pair broke $1,796, which is a 14-3 day raw stochastic at 20.
Most of the technical indicators are bearish. Most moving averages are bearish at the current market level of $1,787.
The key support levels to watch are $1,755, which is a 50% retracement from a 13-week high/low, and $1,772, which is the first support level of the pivot point indicator.
The Week Ahead
Ethereum to USD exchange rate continues to correct lower, below the $1,800, indicative of the bearish momentum, and is expected to move towards the $1,750 level in the medium-term range in the H1 timeframe.
We see a short-term bearish trend line forming from $1,871 towards $1,768.
The resistance zone is at $1,814, which is a pivot point, and at $1,841, at which the price crosses the 18-day moving average.
The weekly outlook for Ethereum price is $1,700 with a consolidation zone of $1,750.
The immediate short-term outlook for ETH has turned mildly bearish, the medium-term outlook has turned bearish, and the long-term outlook is neutral in present market conditions.
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