Technical indicators suggest that ETH could drop to $1,788 soon
- (ETH) has been able to print a gain over the past 24 hours.
- Sellers on the ETH chart are trying to defend the $1,833 resistance.
- Technicals note that ETH could drop to $1,788 if buyers do not step in soon.
Leading altcoin market Ethereum (ETH) has printed a 24-hour gain in the last 24 hours according to CoinMarketCap. As a result, the price of the major altcoin has settled at $1,827.30 at press time. Despite this recent gain, the cryptocurrency is still at risk of a drop in its price in the next few days.
4-hour chart ETH/USDT (Source: TradingView)
Looking at the 4 hours chart, ETH price was trying to break above the key resistance level at $1,833. However, the bears have been applying selling pressure in an effort to defend the price point, which was evident by the wick above the most recent 4 hour candle.
Although ETH was trading bullish above the 9 and 20 EMA lines on the 4-hour chart, it could still face the possibility of a decline below the two EMA lines in the next 24 hours. If ETH price loses the support of the two Asian moving averages, it will drop to $1788 in the next 24-48 hours.
The main indicator to watch is the 4-hour RSI line which was looking to cross bearishly below the RSI SMA line. If this intersection occurs, the bearish thesis will be validated. However, a break above the aforementioned resistance at $1,833 in the next 24 hours will lead ETH to a rise to $1,851 in the next two days.
ETH/USDT Daily Chart (Source: TradingView)
Meanwhile, the daily chart for ETH was contradicting the downward trend indicated on the 4-hour chart. At press time, the daily RSI line was looking to cross above the daily RSI SMA line, which would be a noticeable bullish sign. If this flag is validated in the next 24 hours, it could see the cryptocurrency price rise to $1868 in the next 24-48 hours.
Given that the 4 hours chart is a more recent representation of ETH price movements, investors and traders may want to wait for the ETH price to break above the $1,833 resistance before looking to enter a long ETH trade. For additional confirmation, traders may also want to wait for ETH to close a daily candlestick above the 9-day EMA line.
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Subsequent technical indicators suggest that ETH could drop to $1,788 and soon the debut coin issuance.