At $1,536, the current price of Ethereum is in the middle of the $1,479 to $1,593 range. A brief rise to $1,593 may be feasible, but the alternative currency is still negative and targets a return to $1,350. The bullish argument for ETH will be refuted if a daily candlestick closes above the $1,633 mark.
Why will this be so?
In recent times, the price of Ethereum (1) has regularly outperformed that of Bitcoin, but this trend may be about to change. Investors might anticipate that the price of ETH will adjust to steady levels. Market players should note that this short-term negative move will allow cautious purchasers to amass the alternative currency in the long run.
Ethereum’s price is falling.
Between October 21 and October 29, the price of ethereum increased by 32%, setting a local high of $1,663. After October 29, this quick increase already resulted in a series of lower lows, but ETH has yet to break below the swing low of October 28 at $1,479 to cause a substantial market structure adjustment. Following the consolidation on October 28, the price of Ethereum now ranges between $1,479 and $1,593.
After a range-high departure, ETH is now circling at $1,536 little over the midpoint. The relative Strength Index (RSI) (2), a momentum indicator, has interestingly fallen below 50, signaling that sellers control the narrative. The easy-hanging fruit for traders is that the Ethereum price is likely to sweep the range bottom around $1,479, according to investors. However, sustained support below this level may cause inefficiencies between $1,446 and $1,349 to rebalance.
What Traders should look for
Traders might exercise caution and book profits at the $1,389 and $1,364 support levels. The bears would win almost 10% from this decline in the price of ethereum. While things are looking tricky for the price of Ethereum, the bearish thesis will be refuted if the price remains above the range’s midpoint at $1,536 and then reverses the $1,633 barrier into a support level. This retaliatory action might signal that the buyers are in charge and would probably drive the price of Ethereum to $1,708
