Ethereum price traded sideways between the $1,700 and $1,600 price point. For now, Ethereum is firmly on the $1,400 support line. Over the past 24 hours, the price of Ethereum has depreciated by more than 4%.
Bearish sentiment began to take over on the ETH chart, with the technical outlook pointing in the same direction. For the bulls to surface again, the price of Ethereum needs to rise above the $1,745 price ceiling.
If ETH manages to break the $1,745 price point and stay above that level, the chances of a return to the $2,000 mark are not that slim.
Buyers left the market as the coin faced a sell-off on the 4-hour chart. Ethereum price could trade around the $1,300 mark if sellers take over the market.
Last week, Ethereum noted a positive price movement, however, the bulls were unable to sustain the momentum. The price of Ethereum is also likely to be significantly affected by the Ethereum merger due in September.
In this software update, the token will move from Proof-of-stake (PoS) consensus to Proof-of-work (PoW) consensus. This will make mining useless because the validators will be responsible for the security of the new network.
Ethereum Price Analysis: 4-Hour Chart
ETH was trading at $1,590 on the 4-hour chart. Currently, the coin has managed to stay above the $1,500 support line. If the number of sellers starts to outnumber the buyers, the price of Ethereum could soon drop to $1,300 on the chart.
During the last week, the coin has moved up and down between the price levels of $1700 and $1600 respectively. The immediate price resistance for the coin was at $1745 and for the bulls to return, it is vital that ETH rises above this level.
Local support for the coin was at $1,471 and a push by the bears could push the Ethereum price down to $1,300. Ethereum volume remained low, highlighting the bearish sentiment as sellers returned to the chart.
The altcoin has caught on to the effects of the sell-off as indicators point to negative price action. The Relative Strength Index was below its midline as sellers took over the market.
Continued selling pressure will lead to a further significant decline in the value of Ethereum. The price of Ethereum was below the 20-SMA line, this value was considered bearish.
This meant that the sellers controlled the price momentum in the market.
Other ETH indicators were in line with the drop in buying pressure. As the price of Ethereum increased losses, the coin continued to display a sell signal on its chart. Convergence-divergence of moving averages displays the direction of the price and its change.
The MACD has undergone a bearish crossover, resulting in red histograms tied to a sell signal for the coin. Parabolic SAR identifies the current trend in the market, the reading suggests a downtrend as the dotted lines of the indicator were above the candle.
| TA: Ethereum will see a new rally if it clears this key breakout zone
Featured image from UnSplash, chart from TradingView.com
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