The downward trendline rejected the price of ether on Monday, causing an 11% drop in price over the following three days. It had dropped below its June 24 low of $3,240 by Thursday's closing, and it was back at its May 1 low of $2,817.As of Friday, it is trading at about $2,914, which represents a further 4.4% decline from the level of the previous day. The price of ETH may drop 6.5% to retest its daily support level of $2,621 if it closes below its low point of $2,817 from May 1.
This bearish thesis is supported by the Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart, both of which are below their respective neutral thresholds of 50 and zero. This implies that bearish momentum will likely persist, which might cause the price of Ethereum to drop even more.
On the other hand, if Ethereum's daily candlestick price closes above $3,524, forming a higher high in the daily time frame, it could indicate that bullish sentiment persists. Such a development may trigger a 5.6% rise in Ethereum's price to revisit its high of June 9 at $3,717.