The largest altcoin in terms of market cap and the second biggest crypto project by market cap, Ethereum (ETH), is attempting to test a key resistance level.
According to the crypto market tracker, CoinMarketCap, the price of ETH is down by 1.17% in the last 24 hours as its price now stands at around $1,229.02.
ETH/USDT 4-hour chart (Source: TradingView)
Looking at the 4-hour chart, the amount of trading volume is decreasing as the price approaches the resistance level at $1,300. Should the level of buy volume not pick up soon, the price of ETH may drop to the next lowest support level after climbing for several days.
This could result in a corrective move that could see the price of ETH drop to around $700-$800 from its current level, which is around a 24% drop in price.
Daily chart for ETH/USDT (Source: CoinMarketCap)
Looking at the daily chart for ETH/USDT, the price of ETH is currently between 9 and 20 EMA. Furthermore, the 9 EMA is positioned below the 20 EMA, which shows that bears still have the upper hand on the daily chart.
As the price of ETH breached the 9 EMA level and made its way towards the 20 EMA level, it was met with an influx of sell pressure as can be seen by the wicks of the 2 candlesticks post the breach. This suggests that bears are fighting to keep the price of ETH below the 20 EMA level.
The volume simmering down as the price of ETH approaches the resistance level at $1,300 may suggest that there will be no break away above this level. This could only mean that the price of ETH will drop in the next few days or will consolidate.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.