Ethereum (ETH) Continues to Hold Selling Pressure

The Ethereum platform is an open-source and decentralized platform. That means developers can develop, modify and host their dApps free of cost on this platform. The peer-to-peer smart contact in this network helps to provide services in different sectors for real-world use. It faced a security issue in 2016; after that, it modified its algorithm, and now it is more secure, scalable, and fast. ETH is the token of the Ethereum network. The other cryptocurrencies, which are created on the Ethereum platform, are known as ‘tokens.’

While writing this analysis, the price of Ethereum is trading around $2532, which has been in the downtrend for the last two months. It formed lower lows and lower highs and took support around $2530. If it breaks, the next support level will be $1770. ETH has formed a triangle pattern, but we think it will consolidate for the next couple of months. The candlesticks will stay in the range of $3370 to $1770. Many short-term investors could think it is a nice opportunity to get some profit in the short term, but it is risky because the MACD is down, the RSI is below 40, even the Bollinger Band shows strong bearishness. The last few candlesticks are in the lower half of the Bollinger band, and it may break the band in the next few days.  

After reaching an all-time high of $4850, it has been in a downtrend, and now it is showing a sign of recovery. Still, it is not safe for investment, considering the indicators and technical point of view. If you consider the fundamental side, Ethereum is among the top five cryptocurrencies in the world.

Let’s find the long-term view from the weekly chart. Even in this chart, Ethereum has taken support, but it may break the level soon because the chart has been in the downtrend. The candlesticks of the last week of December can be considered as a recovery candle, but still, it is not enough because the next few candles are red.  

Considering the technical indicators, the MACD is bearish with big red histograms. The RSI is around 40, and we think the next few candlesticks will come down to the lower level of the Bollinger Bands. In short, it is bearish in the long-term chart.  

We think it is not the ideal time to invest until it shows another momentum of bullishness. If you think you can handle the risk of volatility, you can try to get a short-term profit in the consolidation period for the next few weeks. Indeed, Ethereum is a popular coin, and it has given a huge return to its investors, and it will continue its bull run in the next few years.