The reorganization has been unkind for Ethereum and cryptocurrency bulls.
At the time of going to press, ETH/USDT prices are neck-deep in red, printing double digits in the past week of trading and confirming fears of July 19.
Ethereum Price Performance
The candlestick arrangement in the daily chart points to bear trend continuation.
It is a move that would completely decimate hopeful traders–technically giving bears momentum to unwind gains of the first quarter of the year.
It is despite supportive fundamentals and hopes of making Ethereum a store-of-value asset, competing with Bitcoin as a deflationary asset.
Traders are pinning on early August activation of the London upgrade as the trigger that might change the trajectory of ETH/USD in short to medium term.
From the daily chart, ETH/USD prices are back to June 2021 lows. However, unlike the price action of last month, selling momentum is building up.
In that case, ETH prices might force its way below $1.7k, below June 2021 lows, and catalyze another round of selling pressure that may see prices drop to $1.4k—a retest of 2017 highs.
Some pointers suggest this possibility. For instance, already, ETH prices are aligning along the lower BB as volatility increases.
Additionally, the inability of Ethereum bulls to build on gains of the end of last week and the resumption of selling pressure of May and June also suggest a strong wave of liquidation.
The middle BB, in this case, is a strong resistance line that sellers must unwind if gains of Q1 2021 are to resume.
Ethereum Lost $1.9k, Analysts Fear for ETH HODLers
If the current ETH/USD trend guides, prices could plunge further. It is the position held by one trader on Twitter.
In his view, once ETH prices broke below $1.9k, it lost the critical support line. For this reason, the odds of ETH falling back towards $1.2k to $1.4k remain high.
— Witch (@CryptoWitch_) July 19, 2021
The analyst’s forecast will only change if there is a good high volume break above $1.9k and $2k—the psychological round number. Further gains and revival of ETH would also depend on reaction at $2.9k on the upper end—a long shot considering how bears have acted in the recent past.
ETH/USD draw-down is despite the formation of a bullish divergence pattern in the 4HR chart.
One bullish sign on the 4-hour chart for #Ethereum…. RSI has trended up while price has trended down. That's a clear divergence. See dotted lines on this chart. #ETH #ETHUSD pic.twitter.com/R9Geym4mTX
— Six Three Six (@Six_Three_Six) July 19, 2021
An analyst observes a series of lower lows diverging from the higher highs posted by the RSI indicator.
This could offer support for prices in the short-term only if there are sharp gains aforementioned critical resistance levels.
Elites are using Fear to scare weak hands; ETH/USD will reach $8k
Another trader, jaydee_757, takes every opportunity to accumulate on dips based on price action in the monthly chart.
In his view, the Elites are playing the fear game, forcing weak hands to sell. Those with “diamond hands,” he explains, will win.
The analyst adds that expansions and contractions of prices are expected in every open market, and the dip of ETH/USD isn’t an anomaly. If anything, these corrections offer loading opportunities for savvy traders.
ETH/USD prices are moving inside a rising channel in the monthly chart, bouncing higher after retesting the primary support line.
Sustained losses through May and June pushed RSI to the oversold territory in the weekly chart.
Besides, the Stochastic RSI is also about to print a buy signal, pointing to alignment from heavyweights.
For this, he expects ETH prices to blast past $8k.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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