Ethereum corrected strongly after a series of ATHs
Ethereum’s price witnessed selling pressure hitting the market and pulling the value of the digital asset down by 16% in 16 hours. That devaluation went from $ 3,851 to $ 3,214. However, the staggering price found some strength to recover and was currently trading at $ 3,501, with a market capitalization of $ 396.78 billion.
Ethereum hourly chart
Source: ETHUSD no TradingView
The Ethereum chart indicated that the asset has fallen to levels in early May since the correction was established. ETH’s value fell to seek support at $ 3,218, which was strong support earlier this month.
As the price rebounded from that support, ETH now headed for immediate resistance at $ 3,522. However, the asset may not be able to exceed that level and can consolidate between $ 3,347 and $ 3,522.
Reasoning
The signs of price consolidation were visible in the market. The Bollinger Bands, after being diverted for a long time, now sought to converge. This was a sign of reduced volatility in the market. Meanwhile, the signal line that resided above the candlesticks was now heading downwards, suggesting that the price could be downward.
However, traders were trying to push the ETH market into balance. The relative strength index that was pushed down into the oversold zone was now trying to reach equilibrium as buying pressure increased. At the time of this writing, the indicator’s value was 49 – almost in a balanced state – this suggested that buying and selling pressures had now equaled. However, momentum remained low and negative.
Conclusion
The Ethereum market has seen strong volatility push its value down. As the digital asset recovers from that loss, the market may continue to trade at the current price level, as buying and selling pressures have been leveled off. ETH may test immediate resistance at $ 3,591 soon, but it may remain below this level.
Source: AMBCrypto
