On September 19, the rising Ethereum price hit a roadblock at $1660, forming a bearish reversal pattern known as the “Evening Star.” This particular pullback marked the third time that Ether has bounced back from a downward-sloping resistance trendline that has been dominating its price trajectory for more than two months. Given this consistent pattern, the ongoing downtrend looks set to continue with the potential for further declines on the horizon.
Will Ethereum return to $1700?
ETH price is facing dynamic resistance from a falling trend line.
A breakdown below the $1610 support sets up a potential decline to $1500.
Intraday trading volume in Ether is $1.9 billion, indicating a loss of 33 percent.
From last week's high of $1669, the Ethereum price fell 4.5 percent to its current trading price of $1593. This decline surpassed the local support at $1610, reflecting sellers' intention to push the price lower.
However, the lack of a significant follow-up after this decline indicates that the downward momentum has decreased. As a result, the coin is seeing a slight upside and potentially retesting the overall resistance trend line.
If this happens, it offers buyers an opportunity to break this barrier, hoping to spark a new phase of recovery. This upside breakout, along with the daily candle close, could increase the Ethereum price value by approximately 8 percent, targeting the $1744 level.
When analyzing the price behavior of the past quarter, it appears that the Ethereum coin has underperformed compared to the Bitcoin price. Price corrections have been more pronounced while Ethereum bulls' recovery attempts have tended to be subdued. Given this pattern of price behavior, investors should approach this altcoin with caution when adding new funds.
Bollinger Band: A decline at the lower bound of the Bollinger Band reflects that sellers are currently aggressive.
Relative Strength Index: The daily RSI slope forming three consecutive higher lows indicates increasing bullish momentum.
