Leading altcoin Ethereum (ETH) has started a bull run with the impact of its highly anticipated upgrade Merge. However, it fell sharply after Fed Chairman Jerome Powell’s Jackson Hole speech. Thus, in August, Ethereum price dropped below $1,500 after seeing above $2,000. Analysts are predicting the next direction of Ethereum price.
Ethereum price analysis
Crypto analyst Anushsamal provides the following analysis for the leading altcoin. Broader market weakness can be blamed for the southward movement of most major altcoins. The altcoin faced a significant sell-off as Ethereum price struggled to hold itself above its immediate resistance. The technical outlook for the altcoin also pointed to bearish strength. Buyers exited the market as soon as ETH failed to defend the immediate support level.
If the coin fails to trade above the $1,400 price level, it will likely continue to decline. Bitcoin has dropped to the $19,900 price mark causing sellers to become active in the market. A dip below the $1,400 level will cause Ethereum to stay at $1,367. Broader market support and purchasing power are needed for the altcoin to break its bearish thesis. ETH was trading at $1,470 at the time of writing. It tried to recover on the altcoin chart. Therefore, it is possible for the current price action to make a correction.
The selling pressure strengthened after Ethereum price dropped below $1,500. The immediate support level for the coin was $1,400. If Ethereum stays above the $1,400 level, more losses can be avoided. But the altcoin still won’t come out of the jungle. The bearish price action will remain on the chart until Ethereum price breaks above the $1,500 price ceiling. Meanwhile, the amount of ETH traded decreased. This shows that the sales force has increased.
Ethereum price technical analysis
ETH is oversold on the four-hour chart. The sudden oversold of Bitcoin caused buyers to lose confidence in the asset. Therefore, major altcoins followed the same path.
The Relative Strength Index is below the 20 mark. This refers to oversold conditions for the cryptocurrency. Ethereum price is below the 20-SMA line. This means that sellers are driving the price momentum in the market.
Altcoin’s selling force has increased in the last 24 hours. Cryptocurrency has been oversold. Also, other technical indicators are showing a sell signal. The Moving Average Convergence Divergence (MACD) shows the price momentum as well as the chances of a reversal. MACD has been bearish. It also formed red histograms below the half line, which is a sell signal for the altcoin.
Bollinger Bands show price volatility and fluctuations. The gap between the bands pointed to increased chances of price volatility at press time. For the altcoin to see signs of breathing in subsequent trading sessions, it needs to rise above its sudden price ceiling.
Other analyst opinions on ETH price
cryptocoin.comAs you follow, Jerome Powell delivered his much-anticipated speech on August 26. Worries about this talk, however, started around August 14, when ETH’s intraday high was $2,002. Currently, ETH is trading around $1,474. After Powell’s Jackson Hole speech, some popular crypto analysts and traders commented on short and medium term prospects for ETH price. Popular analyst Capo Of Crypto shared the following tweet:
Short squeeze to 1,800 is still likely. Then new drops.
Meanwhile, another crypto analyst, Alex Krüger, commented:
It’s probably too early to buy the dip. Stocks tend to continue falling after the move triggered by such a big event, especially on Friday. Imagine the coming week is going to be bloody. There is payroll data that will trigger a reversal next Friday.
Finally, analyst Justin Bennett shared the following about Ethereum for his followers:
Please stop assuming that ETH Merge or crypto adoption will prevent further downside if the global macro environment continues to deteriorate! Valuations rarely run parallel to growth. Thus, the global macro surpasses the crypto macro.
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