Bitcoin fell by 3%, and after this, altcoins began to decline, the price of which decreased by an average of 5%. At the same time, the trading volume fell. Bitcoin’s dominance in the market continues to grow for 7 days in a row.
Let’s take a look at the Ethereum chart and see if this decline will continue:
A week ago, the price reached $2,409 and tested the uptrend from the bottom up. However, it failed to gain a foothold at this mark and the chart began to fall. It is important to note that the trading volumes remained practically unchanged either in the growth or in the fall. This indicates low liquidity in the market.
At the same time, a descending triangle has formed on the chart, within which the price moves. Already twice, Ethereum has tried to break through its upper border, but it has failed to do so. Now the price is approaching the lower border at around $1,700.
The $1,700 level is the largest support at this stage. This is where the price came after the major market crash at the end of May. A few weeks later, it was from here that we saw a 44% rise in Ethereum.
The moving average lines of the MACD indicator almost reached zero and then turned downward. The lower moving average crossed the higher moving average and this indicates a high probability of a further decline in the chart.
Stochastic has gone down rather sharply and is already in the oversold zone. The RSI has also turned down and is showing a strong downtrend that should continue in the coming days.
It was also revealed yesterday that Uniswap had implemented a second-tier scaling solution, Optimism Ethereum. This is a very important step, as it will reduce exchange commissions tenfold. However, this news did not affect either Ethereum or DeFi prices, and theirs charts continued to fall.
All of this indicates that Ethereum could fall even further down to $1,700. Most likely, at this level, there will be a fierce struggle between buyers and sellers. If buyers win, then the chart may turn up and show a slight increase, but if sellers win, then Ethereum may drop to $1,300 – $1,400.
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