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Distribution Phase at Key Resistance Hints 16% Drop – Crypto News

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3 years ago

November 4, 2023

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Ethereum Price Prediction: The rising selling pressure at the $1830 mark hints the ETH price may witness a correction phase

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Ethereum Price Prediction: Since the onset of November, Ethereum has experienced heightened volatility with the $1830 level proving to be a formidable resistance, impeding its upward trajectory. This resistance has led to two weeks of indecisive trading, as evidenced by long-wicked candles which reflect the market’s current uncertainty. Investors are pondering whether this consolidation could usher in another bearish downturn.

Also Read: US Seizes $54 Mln Crypto, Including Ethereum, In Narcotics Scheme

Is a Correction Underway?

The channel pattern leads to the current consolidation in the ETH price
A bearish breakdown channel pattern would set the price at 16%.
The intraday trading volume in Ether is $5.3 Billion, indicating a 27% loss.

Source- Tradingview

The ongoing recovery in the Ethereum price journey initiated from the mid-October low of $1522 to a three-month high of $1874, amounting to a 23% increase. Nonetheless, this rally brought it to a resistance level that aligns with the upper trendline long-standing wedge pattern, potentially introducing a new supply zone for the market participants.

Mirroring the Bitcoin price consolidation, the ETH price is encountering substantial selling pressure around the $1830 threshold, as suggested by the long-wicked rejection candles. However, a detailed analysis at shorter timeframes, reveals a rising channel pattern demarcated by two ascending trendlines.

Should this pattern hold, we might see this altcoin oscillate within the $1800 to $1880 band, indicating a moderate bullish continuation.

From a bearish viewpoint, a breach below the channel’s lower boundary could precipitate a short-term downturn for Ethereum. The Fibonacci Retracement Tool delineates critical support levels at $1750 (corresponding to the 38.2% Fibonacci level) and $1700 (at the 50% retracement mark).

A retracement to these zones could potentially be a precursor to a renewed ascension above the $1880 threshold, maintaining the larger bullish narrative.

Can the ETH Price Fall Back to $1500?

Ethereum’s daily chart over the last seven months illustrates a methodical pullback within the confines of a descending wedge pattern. The latest uptick was a part of this pattern, testing both of its boundaries. If the pattern endures, a correction towards the $1500 mark might materialize, though traditionally, such a pattern concludes with a bullish reversal, as Coingape mentioned in our previous article.

Exponential Moving Average: The daily EMAs(20, 50, 100, and 200) waver around the $1780 to $1700 price bracket, fortifying this area as a strong support zone.
Relative Strength Index: The daily RSI forming lower highs within the overbought territory signals a possible price retracement.

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