- Ethereum structural break and Death Cross
- Ethereum Head and Shoulder neckline broken, pointing to the targets close to $1100.
- September targets for Ethereum
Ethereum:
Ethereum holds the title of being the second-largest cryptocurrency, with a market capitalization of $196,838,671,836, trailing only behind Bitcoin. As of the current moment, Ethereum is trading at $1638, representing a 0.2% increase over the past 24 hours. However, it has experienced a 1.2% decline over the last 7 days and a substantial drop of more than 11% in the past 30 days.
Weekly Timeframe:
In the weekly timeframe, Ethereum is exhibiting a clear uptrend characterized by Higher-High and Lower-High formations. Additionally, an upward trendline provides robust support for Ethereum. Notably, the 30, 50, and 100-week Exponential Moving Averages (EMA) act as formidable resistance levels, while the 200-week EMA serves as support for ETH. Examining the technical indicators, the Relative Strength Index (RSI) currently stands at 42.76, and the Moving Average Convergence Divergence (MACD) is in bearish territory. Both these indicators suggest weakness on a weekly basis, and continued interactions with the 200 EMA could potentially result in a significant price decline.
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Daily Timeframe:
Transitioning to the daily level, Ethereum has deviated from its previous bullish pattern of Higher-High and Higher-Low, adopting a new bearish structure characterized by Lower-Low and Higher-Low formations. Ethereum’s price is currently trading below the 200-day EMA, and all crucial EMAs on the daily chart, including the 30, 50, 100, and 200-day EMA, are acting as resistance levels. 50 EMA has also crossed 200 EMA downside, which is known as death cross. Death crosses are bearish in nature and whenever death cross happens a significant down move is observed in the asset. Recently, Ethereum faced rejection from the 30-day EMA. On the technical side, the Relative Strength Index (RSI) has shifted from oversold conditions and now stands at 37 on the daily timeframe. The Moving Average Convergence Divergence (MACD) has also entered positive territory. Currently, Ethereum exhibits low volatility, and its trading volume is consistently decreasing, signaling potential risks in the days ahead.
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Analyzing chart patterns on the daily timeframe, Ethereum has broken below the neckline of the head and shoulders pattern, which is typically considered a bearish signal. If this pattern unfolds successfully, the price of Ethereum could drop to around $1120, just above the higher low observed on the weekly timeframe. Ethereum has also breached an essential horizontal daily support level, confirmed by a close below this critical threshold. Given the combination of low trading volume, decreased volatility, the bearish market structure, and the indicators’ lack of strength, there is a possibility that Ethereum’s price could fall to around $1500. The price targets for the month of September are projected at $1600, $1550, and $1500.
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Conclusion:
Transitioning to the daily level, Ethereum has shifted from its previous bullish structure to a bearish pattern of Lower-Low and Higher-Low formations. It currently trades below the 200-day EMA, with all key daily EMAs acting as resistance levels. The RSI’s rebound from oversold conditions and the MACD’s positive territory offer some hope, but the diminishing trading volume and volatility signal potential challenges in the days to come.
Chart patterns also indicate a bearish outlook, as Ethereum has broken below the head and shoulders pattern neckline, and horizontal daily support has been breached. These factors, combined with the broader market dynamics, point to a possible price decline, with targets in the range of $1500. As the month of September unfolds, Ethereum traders and investors will closely monitor these technical signals and price targets. The cryptocurrency landscape is ever-changing, and informed decision-making remains key to navigating the uncertainties and opportunities that lie ahead for Ethereum and the broader crypto market.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
