ETH Technical Analysis: Buyers Struggling To Form Reversal Pattern 

The ETH technical analysis displays a continuation of bearish momentum as the Ethereum price actions do not show any signs of reversal, despite RSI representing buying opportunities for the traders. While the global cryptocurrency market cap dropped by 1% on Wednesday, Ethereum (ETH), the second-most valuable cryptocurrency, has also been in red due to increasing bearish sentiments. Despite early recovery efforts, ETH has been trading sideways between the range of $1175 and $1227 on Thursday. Currently trading at $1191, the 3.32% drop in the last 24 hours kept ETH under the influence of bearish momentum. At $146.1 billion, the ETH market cap declined by 2.66%, whereas 24-hour trading volume plunged by 2.16% to reach $11.5 billion, supporting the bearish trend in the market due to high selling pressure.

Key Points

• The daily chart shows a downtrend with a reversal possibility due to an increase in demand
• RSI at 52 shows a balance between supply and demand
• The intraday trading volume in ETH is $11.5 billion

Source: Tradingview

ETH Technical Analysis

In the previous analysis, ETH displayed strong recovery signs after a bullish breakout at $1,180 while prices sustained momentum above $1,200. However, ETH failed to maintain the bullish reversal in the following days. ETH has struggled to break the ceiling of $1283 since last one week witnessing a surge of 0.67% over the 7 days. Sideline traders need to wait for another bullish reversal to get an entry opportunity. If ETH can encash the bullish reversal it may break above $1300. Conversely, if the current bear prolongs, the prices may fall below the psychologically important mark of $1000.

Technical Indicators

After making a bearish divergence at the overbought boundary, RSI slid to the midpoint showing a balance in demand and supply, signaling buying opportunity for traders. The bearish crossover made by the MACD line with a bearish histogram signals bearish momentum in the market. Therefore, although the technical indicators do not show an optimistic overview of ETH at the moment, intraday traders may look for buying opportunities at the next major fallout.

Source