Ethereum Retraces to $1612.81 Support After Short-Lived Spike

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  • Ethereum price dips to lows of $1,613.38 after a sharp rejection from $1700.
  • ETH declined by 6.38 in the last 24 hours.
  • The immediate support levels are found at $1,564.03 and $1,550.0.

Ethereum price analysis indicates ETH has been on a sharp decline overnight as it retraces from highs of $1700. The dip has seen ETH fall to lows of $1,613.38 at the time of writing. The recent Ethereum price rally saw the cryptocurrency surge to highs of $1740 before facing a strong rejection that led to a sharp decline in prices. The sell-off has seen ETH retrace all the way down to $1,613.38, which is where it trades at the time of writing.

ETH/USD price chart,source:Coinmarketcap

Ethereum’s price movement over the last 24 hours has been characterized by heavy selling pressure that has pushed prices down by 6.38%. The cryptocurrency currently has a trading volume of $197,437,004,152.93 and a total market cap of $194.7 billion. The main catalyst for the recent sell-off appears to be the long-awaited Merge that could take place on Wednesday or Thursday this week as the network moves from Proof of Work (POW) to Proof of Stake (POS) consensus.

ETH/USD 1-day price chart,source:TradingView

Ethereum’s price movement over the last seven days has been positive as the cryptocurrency continues to form a series of higher lows and higher highs. This indicates that bulls are in control of the market and that prices are likely to continue moving higher in the near term. The main support levels are found at $1,564.03 and $1,550.0 while the resistance levels are found at $1,709.70 and $1,722.40

ETH price is currently below the 200-day EMA and the 50-day EMA which indicates that the path of least resistance is to the downside. However, the Relative Strength Index is still in oversold territory which suggests that the sell-off may be overdone and that a corrective rally could take place in the near term.

The market volatility is increasing significantly due to the price fluctuation and the selling action witnessed today. The Bollinger bands are seen to be diverging which indicates that the market is due for a breakout in either direction.

Ethereum price analysis reveals that ETH is in a bearish trend in the short term but remains in a strong uptrend in the long term. The recent rejection from $1700 could see prices fall to $1,550 support in the near term. However, the $1,564.03 support level is likely to provide some strong buying pressure that could see prices rebound higher in the near term.

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