Ethereum is heading downwards after a breakout from the Support Line of $2300 and is currently trading at $2024. The previous weekly candle showed a significant price movement and closed below the Support Line, indicating a downtrend.
There was an unceasing formation of bearish candles with lower lows in the last 6 weeks after hitting the downtrend line. The previous week’s bearish candle has even suppressed the up-trend line and declined towards its lows.
The technical parameters in the long-time frame chart show that the coin is in bearish momentum and may reach its lower lows in the upcoming days if the bulls don’t show positive price action. Read our Ethereum price prediction to know the detailed future price projections of the coin!
In the 4-hour time frame chart, the price moves in a sideways channel with slight price movement. There is a bullish divergence between the price and the RSI indicator in the 4-hour time frame chart. However, the ETH price needs to close above the peak of $2456 to confirm an uptrend pattern.
On the daily chart, the RSI indicator is at 31, which shows that the ETH coin reached its oversold zone and is currently in the neutral zone. But, the RSI line is tilting down, and it may return to its oversold zone soon.
Ethereum coin has recently touched the strong bottom horizontal line from where the price tried to take a U-turn but is showing remote price movement sideways.
If the ETH price continues to decline and closes below the recent low of $1733, it may reach $1304. However, if the coin ascends and closes above the recent high of $1977, it may reach the resistance of $3034.
The MACD line has been below the Signal Line, and the histogram shows diminishing red candles from the last few days. Once the ETH price closes above $2300, the indicators may give a bullish signal to the investors seeking to buy the coin.
The supportive volume on May 12 at the Support Line in favor of bears and facing rejection at the same point as the price tried to climb can be an opportunity for the bulls if they try to push the price upwards in the upcoming days.
