ETH’s Price May Drop to Support Level in the Next 48 Hours
The price of Ethereum (ETH) has printed a slight 24-hour gain of 0.16% according to the crypto market tracking website, CoinMarketCap. At press time, the altcoin leader is also up 4.82% over the last 7 days – elevating its price to $16,826.30. ETH has also been able to gain on Bitcoin (BTC), and has strengthened against the crypto market leader by 0.41%.
Daily chart for ETH/USDT (Source: CoinMarketCap)
The price of ETH is still trading above the 9-day and 20-day EMA lines after breaking through the two EMA lines yesterday. It did, however, retrace slightly once it reached the resistance level at $1,251.27.
Investors and traders should not enter into any long positions for ETH today. Technical indicators for the altcoin suggest that its price will fall in the coming 24-48 hours.
The first technical indicator that is showing bearish signs is the daily RSI indicator. At press time, the daily RSI line is positioned above the daily RSI SMA line, but is sloped negatively toward oversold territory.
The 9-day and 20-day EMA lines may flag bearish should the 9-day EMA line cross below the 20-day EMA line. Given the slim margin that exists between the two lines at press time, there is a higher probability that this will happen.
Should ETH’s price drop, it will likely target the 9-day and 20-day EMA lines which will offer some support. Thereafter, if the support fails to hold, ETH will be at risk of dropping to sub $1,200.
On the other hand, should the 9-day and 20-day EMA support hold, then ETH will bounce off the level to return to the current resistance level.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
