The price of Ethereum has bounced back over the past few days, with the coin dropping 2% in the past 24 hours. Current price action points to consolidation. In the last trading session, ETH has declined below the $1,900 price mark.
Continued consolidation for Ethereum has now pushed the price of Ethereum closer to $1,800. If the King altcoin is unable to break the $1,800 level, it will target the next support level for the coin.
The technical outlook had turned bearish as the coin was consolidating mainly due to loss of value. Its charts showed declining buying power, leaving ETH bearish at press time. If Ethereum needs to move above the $1,900 price level, the buying power on its chart needs to recover substantially.
The global cryptocurrency market cap today stands at $1.18 trillion, a . with 1.6% negative Changes in the last 24 hours. Market movers were also declining on their respective charts, impacting the overall price movement of the coin.
Ethereum Price Analysis: Four-Hour Chart
At the time of writing, ETH was trading at $1,880. The coin had seen rejection at the $2,000 price mark several times. Ethereum price saw a correction after attempting to trade near the $2,000 price level.
The overhead resistance for the coin was at $1,900 and a further jump from the mentioned price level would propel ETH to touch the $2,000 mark.
Local support for the coin was at $1,700, but continued sideways movement could propel the price of Ethereum towards $1,500.
Ethereum’s trading volume showed an increase in selling pressure indicating that sellers were starting to exercise control in the market.
Lateral trading of the altcoin had taken a toll on its buying power. The indicator on the four-hour chart reflects the same. The relative strength index was below the halfway line indicating that buyers are less likely to be in the market than sellers.
A drop in buying power could see the price of Ethereum revisit $1,745, where the altcoin could again witness demand. Ethereum price was trading above the 20-SMA line and pointing to buyers who were driving the price momentum in the market.
The price movement of ETH has also indicated that the coin has registered a bearish sell signal on its chart.
The moving average convergence divergence underwent a bearish crossover and formed a red histogram under the zero line.
These formations are related to sell signals for Ethereum. The parabolic SAR which reflects the direction of the price of the coin was also negative.
The dotted lines on the indicator above the candlesticks indicate that the price direction of Ethereum is heading south, proving that the bears were stronger than the bulls on the four-hour chart.