Ethereum has rallied by practically 40% in 10 days. The coin is now firmly above $1000. It has additionally surpassed the $1300 resistance as traders rush in to purchase the July crypto dip. However, technical indicators recommend that ETH has misplaced momentum. The coin is now dealing with a steep sell-off. Here are some key takeaways:
Momentum indicators on the chart present ETH is now overbought.
The coin is struggling to maintain above its 50-day shifting common of $1300.
A correction of round 20% is believable over the subsequent few days.
Data Source: TradingView
Ethereum Price Analysis and Prediction
Between July fifteenth and July twenty fifth, ETH charted a robust upward development. The coin was up 40% throughout this era as the broader market recovered from July lows. But this robust momentum has now slowed. ETH has retreated sharply and is now hovering above its 50-day shifting common of $1300. A drop beneath $1300 will seemingly set off a steep sell-off that finally sends ETH to $1180.
Despite this, evaluation of earlier ETH buying and selling historical past exhibits robust demand at $1550. In reality, practically 586,000 distinctive addresses have bought 5.1 million cash at the $1550 mark. If ETH reverses the present downtrend and rallies to $1550, our bearish outlook turns into invalidated.
However, this is not going to be simple. For occasion, ETH is overbought. This leaves minimal area for a robust uptrend. The Tom DeMark (TD) Sequential indicator can also be flashing the ‘sell’ sign. All these elements strongly affirm our prediction {that a} sharp ETH sell-off is very possible.
Will ETH rise once more in the close to time period?
For now, the best-case state of affairs is for ETH to maintain above the 50-day MA at $1300. If this occurs, we might even see a interval of sideways buying and selling as the coin tries to generate demand.
However, the extra seemingly final result is that ETH will finish July in the pink. The coin would possibly even fall beneath $1000 over the subsequent 14 days.
