Published August 13, 2023
Amid the rising FUD in the crypto market, the Ethereum price showed a slow yet steady downfall in the daily time frame chart. Within a month, this altcoin dropped from its July 14th peak of $2028 to its current price of $1850, registering a loss of 8.5%. However, a keen look at the bigger picture shows this correction is part of a long-term rally carried by a rising channel pattern.
Earlier this week, the Ethereum price showed several higher price rejection candles near the $1875 mark. The high wicks candle signifies that traders are adhering to the prevailing bearish sentiment of engaging in selling when the price rallies.
Therefore, if the overhead supply persists, the ETH price is likely to fall another 2% and retest the long-coming support trendline of the channel pattern. In the last nine months, the price has already rebounded five times from this dynamic support indicating a high accumulation zone for buyers.
A potential fall to a lower trendline will likely recuperate buying pressure and kickstart a new bull cycle within the pattern. In ideal conditions, a bullish reversal from the lower trendline will set the Ethereum price back to the upper trendline, wavering around $2500.
While the anticipated bullish upswing could drive the Ethereum price to $2500, the buyer could face in-between supply pressure at $2020, followed by $2133 and $2450. However, the bullish sentiment will invalidate if the coin price breaks below the support trendline.
Published 3 days ago
Your daily dose of Market analysis & Price updates.