Ethereum (ETH) prices fell 10% in less than two weeks after failing to break through the psychological level of $1700. Despite the downward trend in prices, due to bullish divergence, the decline of ETH may be limited and is expected to rise by 5% to $1600
Ethereum (ETH) prices fell 10% in less than two weeks after failing to break through the psychological level of $1700. Despite the downward trend in prices, due to bullish divergence, the decline of ETH may be limited and is expected to rise by 5% to $1600.
The effectiveness of the bullish outlook will depend on whether the daily candlestick closing price of the proof of equity token is below $1505. If the price can be maintained above this level, Ethereum is expected to correct and increase.
In recent weeks, Ethereum prices have been showing a downward trend, but the Relative Strength Index (RSI) shows a strong bullish divergence. RSI has experienced oversold, while momentum indicators have shown higher lows, which may indicate that the downward trend in prices is approaching its end.
If the price can break through the support level of $1505, purchasing pressure may increase, causing Ethereum prices to rise above the direct resistance level of $1547 and even higher to the supply area of $1599. If the psychological barrier of $1700 is successfully breached, this will confirm an upward trend, and prices may continue to rise to the supply area of $1666 to $1736.
On the other hand, although there is a bullish divergence, the relative strength index (RSI) is still below the 50 level, while the momentum oscillation index (AO) is in a negative range, indicating that bears still exist in the Ethereum (ETH) market. Therefore, the downward potential still exists, which may lead to ETH falling below the direct support level of $1547.
If ETH prices continue to decline, the downward trend may extend to below the subsequent support level of $1505. If the price breaks through and closes below this level, it will invalidate the bullish argument. In this situation, ETH may further decline, reaching its low of $1448 on March 12th, which will result in a price drop of less than 6%.
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