- ETH price is to establish bullish momentum.
- Ethereum price showed bullish exhaustion on the Relative Strength Index.
- Invalidation of the bearish trend is a breach of $2,800.
Ethereum price displays reasons to believe in a ‘sweep the lows’ event in the coming days. Traders should approach the smart contract blockchain with caution.
Ethereum price looks fatigued
Ethereum price hints at another price drop in the making as the bulls failed to propel a substantial retaliation compared to the powerful decline displayed by the bears this month. The bears continuously keep the ETH price suppressed, causing congested price action around the $2,000 level.
Ethereum price hints that the $2,000 level of support will eventually break. The Relative Strength Index displays clear negative reversal signals, showing that bullish attempts to reconquer the trend are barely fueled. One could read the indicator as Smart Money uninterested in negotiating at the current $2,000 price level. If market conditions persist, the bulls will eventually capitulate as weak hands will likely place their sell stops below $1,700. A second target is likely at $1,500, which if taken will shake out traders from 2021 levels who chose not to take profit.
ETH/USDT 12-Hour Chart
Invalidation of the bearish trend lies at $2,800. If the bulls can breach this level, the ETH price could surge as high as $3,500, resulting in a 75% increase from the current Ethereum price.