Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Ethereum’s market suffered another hit on Monday, however, its slashing price resulted in inflows rising for the altcoin. The market’s second-largest cryptocurrency seemed to be maintaining its downtrend on the charts and at press time, was trading at $2,462.68 with a market capitalization of $285.74 billion.
Ethereum daily chart
The daily chart suggested that this downtrend gave rise to a descending channel marking the lowering highs and lows. With ETH’s price trading around its crucial support level, a breach could push ETH to $2,038.
However, is the market indicating such a price swing?
ETH’s market was experiencing low volatility, which was essential to keep the price stable. However, this period of low activity could take a U-turn if the price breaches the support at $2,432. The Visible Range indicator suggested that the trading activity at its press time price level was rising. The histogram was picturing rising activity by traders as they tried to hold on to this level.
However, the selling pressure in the market remained high. The Stochastic RSI, which was in the overbought zone, jumped back in as the sellers took over. The price has been on a downtrend ever since and as the RSI continued to remain under the signal line, the selling pressure maintained itself. Meanwhile, momentum was squeezed out of the market as bearishness was high.
Only a sudden surge could push the price of ETH higher on the charts. Without it, the altcoin’s price may continue to either move sideways or succumb to the $2,038-level with rising selling pressure.
Crucial levels to watch out for
Take Profit: $2,049.42
Risk and Reward: 1.21
Ethereum’s market, at the time of writing, was in the cautious zone. As the alt’s price moved sideways, it was waiting for a shift in volatility. Traders were increasingly trading at the press time level and keeping the price afloat, however, the signs of rising selling pressure could put the traders in a tough spot and trigger a sell-off. ETH may receive support at the $2,038-level and bounce back.