Like the Bitcoin market, the spot market for Ethereum, the world’s largest altcoin, [ETH] seemed to collapse under bearish pressure.
At the time of writing, the digital asset lost 27% of its value over the week, and ETH fell to $ 1,491. In fact, ETH was trading very close to the $ 1,479 support. If ETH breaks this level, altcoin may slide further down the price charts.
Ethereum’s one-hour chart underlined that the value of the cryptocurrency was gradually capped in the range of $ 1,569 and $ 1,413. In the past few days, the price of ETH has reached these extremes and has also started to swing between $ 1,479 and $ 1,519.
As the price of the cryptocurrency continues to move sideways at the time of writing, it could be pulled down to test the support level at $ 1,413.
The differentiation of Bollinger Bands showed that the market has become more volatile. Such an increase in volatility along with falling prices contributed to the downward trend of market events.
The Relative Strength Index emphasized that the market is in a state of equilibrium as its value is consolidated. This meant that there were an equal number of buyers and sellers in the market, both keeping value constant. However, there seemed to be an increase in the number of vendors at the time of writing. This could lead ETH to the oversold zone.
Important levels to watch out for
Entry-level: $ 1,479.39
Stop level: $ 1,518
Take Profit: $ 1,418.01
Reward Risk: 1.56
Ethereum’s short-term chart showed at the time of writing that altcoin consolidated in a short range of $ 1,479 and $ 1,519. However, with the market decline and increasing selling pressure, the cryptocurrency could break its support and head to another level at $ 1,413.