- ETH was trading at an important support level.
- Key technical indicators suggest that ETH's value may continue to decline.
Major altcoin Ethereum [ETH] The price is clinging to key support levels as it trends within a descending channel.
A descending channel forms when an asset price continues to make lower highs and lower lows, indicating a broader downward trend.
Readings from the price movement of ETH on the daily chart revealed that this channel formed on March 12th. Since then, the coin's value has fallen by 28%.
According to data from CoinMarketCap, the altcoin is trading at $2,915 at the time of writing.
Will it break at the bottom or at the top?
If ETH bulls are unable to defend the coin’s current support level at $2,850, its price could begin to fall below the lower trendline of the descending channel.
If this happens, the altcoin will be trading at the $2,600 level.
An evaluation of several key technical indicators for AMBCrypto suggested a possible break below the current support level.
For example, ETH's key momentum indicator showed that the coin's decline was outpacing its accumulation among market participants.
At the time of writing, the coin's Relative Strength Index (RSI) and Money Flow Index (MFI) were below their respective neutral points. ETH's RSI was 39.52 and MFI was 49.39.
ETH Elder Ray Index returned negative values, confirming the current bearish trend. This indicator measures the relationship between the strength of buyers and sellers in the market.
If it returns a negative value, it means that bear power is predominant in the market.
Similarly, the points that make up ETH's parabolic SAR were found above its price at the time of this article. These points have been placed that way since his early May.
The Parabolic SAR indicator is used to identify potential trend directions and reversals. If the dotted line is above the asset price, the market is said to be falling.
read ethereum [ETH] Price prediction for 2024-2025
This indicates that the asset's price has fallen and may continue to fall.
Source: ETH/USDT on TradingView
If the ETH bears break below the current support level, the coin’s next price point could be $2,780. However, if this prediction is invalidated, the altcoin could rise above $3000.
