Ethereum bearish market to push past $320 as consolidation comes to an end

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blockchain
  • Ethereum has gained 0.5 percent market value at press time.
  • The crypto prices have pushed past the 23 percent Fibonacci retracement level.
  • Prices breaking past the 50 percent retracement levels may indicate a reversal to the upside.
  • However, a combination of price analysis, RSI, and Bollinger Bands shows the market will continue its bearish trend.
  • The next bearish push is likely to break the $320 resistance level.

Ethereum opened the market at 365.8, reaching highs of 368.4 a few hours after today’s opening. At press time, the crypto market price has gained 0.50 percent, with a market price of 367.8 at press time.

Daily chart price analysis

Ethereum bearish market to push past $320 as consolidation comes to an end 1
Image source Trading View

The ETHUSD daily charts show a market that is consolidating after a strong bearish move that has lasted almost two weeks, having started on September 1st. At press time, the crypto market was bullish and had started erasing the short position gains that were recorded yesterday, when the market closed at -2.79 percent.

However, the bullish move may likely be just a retracement, considering that the bigger trend of the Ethereum shows that it is biased to the downside. The last Ethereum analysis on August 17th shows that the market reacted as expected, pushing prices downwards up to the predicted price of 364 support level. However, the bearish move was too volatile and the markets reversed to the bear markets.

Using Fibonacci retracement for analysis shows that the prices have pushed through the 23 percent resistance level on the daily chart. However, it has hovered at that region for the last five days, forming a strong resistance level around 357.9.

The prices have also found resistance around the 38 percent retracement level, creating a strong support level at the $383.3 region. This has led to the market trading sideways for the last 4 days, after failing to break the support levels of the Fibonacci retracement.

The daily chart analysis shows that the market is still in a bearish market and the recent bullish bias may be a result of a bearish flag. However, if the prices push past the 38 percent Fibonacci retracement towards the 50, it may be time for long term traders to start considering that the market may be reversing.

Breaking the 50 percent retracement level will mean that the market has entered a bull market and the next level of resistance should be expected at 444.4.

Ethereum daily chart indicators analysis

However, combining the price analysis with indicators such as Bollinger Bands and the Relative Strenght Index (RSI) paints a clearer picture of what to expect in the markets.

The daily charts Bollinger Bands are expanded, showing a high level of momentum for the crypto. The chart also shows that on September 10, the high volatility had pushed the prices outside the lower band of the Bollinger Bands, and the last five days may just be a retracement for a continuation of the bearish move.

This is confirmed by the RSI, which has a reading of 47.79, indicating that the markets are trading at a bearish bias position. The RSI also shows a divergence to the downside developing, indicating that the current bearish flag is close to an end, and the market will continue to the downside.

What next for Ethereum?

The three readings of price analysis, Bollinger Bands and the RSI indicates that the crypto prices will be entering a downtrend in the next coming days. It also shows that the next support level will be at the region of $319.1, breaking the $320 barrier to the downside, which has held for more than two months

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