Advertiser disclaimer

Ethereum Dips Below $1600 EMA: Signal to Short?

author
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
By Arslan Ali Butt
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
on October 11, 2023 | 2 min
Updated on Oct 11, 2023
Advertiser disclaimer
  • Ethereum’s price is currently under the pivotal $1600 EMA, hinting at a bearish trend in the immediate future.
  • The RSI, standing at 26, indicates the asset is oversold, suggesting a potential trend reversal or price correction.
  • Chart patterns reveal a significant double bottom support breakout at $1570, reinforcing the bearish sentiment.

Ethereum, often dubbed as the “world’s computer” and Bitcoin’s closest rival in the cryptocurrency realm has recently shown some unsettling movements in its price trajectory. The digital asset, known for its smart contract capabilities, has dipped below the crucial $1600 Exponential Moving Average (EMA) marker. This descent has triggered a flurry of speculations and analyses among traders and investors. The primary conundrum: Is this dip indicative of a bearish trend, signalling an opportunity to short?

As we unpack Ethereum’s current technical indicators and the broader market sentiment, we aim to provide clarity on this emerging scenario.

Show more
ETH/USD Price Chart
ETH/USD Price Chart – Source: Tradingview

Ethereum Price Prediction: Technical Outlook

Ethereum’s journey has been one of substantial ebb and flow, and the recent dip below its pivotal $1600 Exponential Moving Average (EMA) has generated significant discourse among crypto enthusiasts. The present-day Ethereum price hovers around $1,561.30 with a 24-hour trading volume pegged at roughly $5.5 billion. A decline of 1.42% within the past day positions ETH at the #2 spot on CoinMarketCap, boasting a market capitalization of approximately $187.7 billion

.

On a 4-hour chart timeframe, Ethereum’s key pivot point stands at $1663. Potential resistances to watch out for are at $1716, $1797, and the formidable $1850. In contrast, ETH might find solace at immediate support levels around $1580, with subsequent supports at $1528 and $1446.

 

A closer look at the technical indicators paints a clearer picture of Ethereum’s current momentum. The Relative Strength Index (RSI) for the coin is low at 26, signalling an oversold condition, indicating that there might be an impending price correction or a possible trend reversal. The MACD value of -3.39, compared to its signal line at -19.93, hints at a slower downward momentum than before. This could suggest the potential for an upcoming bullish movement if other market conditions are favourable.

 

However, Ethereum’s price currently rests below the 50 EMA of $1572, signalling a short-term bearish trend. Notably, chart patterns show a double-bottom support breakout at $1570, further hinting at a bearish momentum.

 

In conclusion, Ethereum’s immediate trend suggests bearishness below the critical mark of $1570. However, given the volatile nature of the crypto market and Ethereum’s propensity for swift turnarounds, traders should be prepared for any unexpected swings. In the short term, there’s a likelihood that the coin might challenge higher resistances if the broader market sentiment turns positive.

Stay tuned for more updates!

author
About Arslan Ali Butt
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
Other categories