Ethereum (ETH) has been a coin for the bears as it has faced a significant downfall in the past 6 months. After hitting the downtrend line, the ETH token has constantly formed bearish candles with lower lows on the weekly chart.
ETH is currently getting tested at the support line in the long run chart and hasn’t yet closed below it. The forming candle on the weekly chart shows the price has suppressed the up-trend line and has declined and closed below it.
The token is currently moving at a crucial point from where vigorous price action may take place once Ethereum closes below or above the support line of $2298. Check out our Ethereum forecast to know where the price will close, above or below the support level.
During the previous week, there was a price movement of 15% in favor of bears. There was an immense bullish volume on the daily chart as the price moved near the support line of $2298, but the coin couldn’t mount up and close above the recent high of $2456.
ETH token is trading below the 100-period moving average and shows a downtrend pattern. The RSI being at 31, has recently turned from the oversold zone; however, the RSI line being tilted downwards shows that it may go back to its oversold zone if the bulls fail to drive the price upwards.
The MACD line has been trading below the signal line, and the histogram chart shows red candles from the past few days, thus denoting that the coin is in the bearish zone.
Traders can wait for an upcoming candle as the price closes above or below the recent high of $2456 or the recent low of $2298. However, the volume bar was in favor of bulls after an extended period.
If the price can’t close above the previous high of $2528, it can be a tough rejection in the long term. But if the token mounts from there, it may reach a minimum value of $3284. But, if the coin continues to decline, it may reach its lows of $1718.
