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Ethereum [ETH/USD] Technical Analysis: Bears chain cryptocurrency to strengthen downtrend

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The cryptocurrency market has entered the red zone once again after upping the hopes for a bull market yesterday. Amidst this, Ethereum [ETH] is unable to regain its lost glory and position as the world’s second-largest cryptocurrency.

At the time of writing, the coin had plunged 10.2%, trading at $157 with a market cap of $16.2 billion. The 24-hour trading volume was recorded at $2.2 billion.

1-hour

ETHUSD 1-hour candlesticks | Source: tradingview

In this timeline, the ETH candlesticks are witnessing a downtrend extending from $203.75 to $177.4. At present, the previous support set at $165 has been broken to form a new support at a plunged $152. The decline of the ETH market is evident by the constant support violation by the candlesticks.

The Parabolic SAR is currently bearish on the cryptocurrency. The dots are assembled above the candlesticks, enforcing an upper limit on the price of Ethereum

The Awesome Oscillator is flashing red at the market as it intends to side with the bear. The indicator is extremely negative on the prediction for the token.

The Chaikin Money Flow is in tune with the fellow indicators to suggest a bearish run for ETH. Though the reading line is below the 0-line, a surge can be noticed in its movement.

1-day

ETHUSD 1-day candlesticks | Source: tradingview

ETHUSD 1-day candlesticks | Source: tradingview

In the one-day time frame of ETH candlesticks, the downward trendline stretches from $465.7 to $209. Furthermore, the support is set at $182, after breaking multiple supports. However, ETH is slumping without inhibitions and is set to form another support.

The Aroon Indicator is extremely bearish on the Ethereum market since the downtrend is seen to have obtained much strength while the uptrend continues to weaken.

The Relative Vigor Index has made a bearish crossover by the signal line to support the prediction made by the above indicators.

Conclusion

In the technical analysis, the majority of indicators are pointing towards an aggressive bearish market for the cryptocurrency. Ether has been breaching every support to reach a new low, pointing at a strong downtrend for the token.


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Priyamvada Singh


Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.


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