Ethereum Price Analysis: Bearish RSI Hints More Correction; Are You Holding?

Ethereum price analysis imprints a negative view for the day. The price sees a steady decline from the swing highs of $2,000 over the past four-session. It might be a much-anticipated correction or a trend reversal.

The current market structure favors the bearish sentiment. As of publication time, ETH/USD is exchanging hands at $1,830, down 2.46% for the day. The 24-hour trading volume rose more than 16% to $19.31 billion. A fall in price with a rise in volume is a bearish sign.

• Ethereum price extends the decline for the fourth consecutive session.
• The price took a shelter near the critical support zone of $1,850.
• A daily candlestick above $1,900 would favor the bulls.

Ethereum price consolidates

On the daily time scale, the Ethereum price analysis indicates a neutral to negative bias.

 ETH  gave a breakout of the” Cup & Handle”  pattern on August 8 and started to move up from $1,730 to $2,030.  The volumes are below the average line and declining, with the price moving upwards, which implies a cautious tone. When the market is rising while volume is declining, the big players missing from the market, more likely slowly exiting positions.

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Over the last few sessions, we are seeing rejection candles near the higher level, breaking previous days’ low on the daily basis. If that continues to happen, we can expect a sharp big bearish candle in the coming days. 

On the weekly charts, the price faces resistance at the 20-day Exponential Moving Average (EMA). Along with a 38.6% Fibonacci retracement, which will act as immediate resistance for this week.

If the price closes above recent highs of $2,032, then we can expect a good bullish momentum, otherwise, the market will slowly go down. 

The nearest support for ETH could be found in the $1720 to $1750 zone. This is also a 20-Day EMA support level on the daily chart. 

ETH on one hour chart is forming a “Head & Shoulder ” pattern. The neckline is at $1,865. If that level broke and gave a closing below this level on an hourly time frame, then we can expect a good fall of up to $1,750. 

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On the other hand, a shift in the bullish sentiment could induce fresh buying interest in the second largest cryptocurrency. In that case, a move above the $2,000  level could invalidate the bearish outlook. And the price can be higher than $2100.

ETH is coming in a corrective or retracement phase on all time frames. Below $1,865  closing on the hourly time frame, we can put a trade on the sell side.