Ethereum Technical Analysis: Indicators Signal Caution for Ether as Bears Maintain Control
Ethereum price on August 19, 2024 was $2,582, with a 24-hour intraday range of $2,572 to $2,681. The cryptocurrency recorded a trading volume of $9.5 billion, contributing to a market capitalization of $310 billion. Despite these numbers, Ethereum’s technical indicators show a bearish outlook, signaling caution for traders.
Ethereum
Ethereum’s daily chart paints a clear picture of a prevailing bearish trend. After a sharp drop from around $3,565 to a low near $2,017, the market showed signs of indecision, characterized by small fluctuations. Volume analysis further confirms this sentiment, with volume peaking near recent lows, signaling a potential capitulation point. Support is found around $2,017, with resistance expected in the $2,800 to $3,000 range, where previous support turned into resistance.
On the 4-hour chart, Ethereum continues its downward trajectory with lower highs and lower lows, marked by the recent sharp drop to $2,515, followed by a modest recovery. Volume spikes during the downturn indicate strong selling pressure, especially during the decline. Support is currently located around $2,515, with resistance near $2,700, where the price retreated before falling again.
The 1-hour chart reflects a minor downtrend within a broader bearish environment. Ethereum has attempted to recover after falling to $2,565 but has struggled to build momentum. Volume remains low except for spikes during major dips, suggesting that selling pressure may persist. Key support lies around $2,565, with resistance at $2,688.
Oscillators across multiple timeframes are mostly signaling neutrality, with the relative strength index (RSI) at 38.9, the stochastic at 64.8, and the commodity channel index (CCI) at -38.1. However, momentum indicators such as the moving average convergence divergence (MACD) at -145.8 are flashing a buy signal, suggesting a potential short-term recovery. However, the overall sentiment remains cautious due to strong bearish signals from the 10-, 20-, 50-, 100-, and 200-day moving averages, all of which are showing negative sentiment.
Bull's Comment:
Despite the prevailing bearish sentiment, a potential short-term reversal could be on the horizon, as suggested by buy signals from momentum indicators such as the MACD. If Ethereum can hold above the $2,600 support level and gain momentum, there could be room for a bullish recovery towards the $2,700 to $2,800 resistance level. However, this outlook requires careful monitoring of volume and price action to confirm any bullish momentum.
Bear's Comment:
The overall technical outlook for Ethereum remains bearish, with strong resistance and persistent selling pressure across all timeframes. Consistent sell signals from moving averages and the struggle to gain momentum suggest that Ethereum could continue to face downside pressure. Barring a significant shift in market momentum, the path of least resistance looks lower, with key support levels at risk of being tested.
What do you think about the ether market performance on Monday? Share your thoughts and opinions on the subject in the comments section below.
