Cryptocurrency News – The ongoing correction in the price of Ethereum, the largest altcoin in the cryptocurrency market, has encountered significant demand pressure around $1600. Although falling prices are worrying, regaining the support point has been encouraging. But will this support be enough to start a new recovery in ETH price?
If the critical support point is lost, ETH price may experience another decline of 8%. The rejection of lower prices around $1600 reflects increasing buying pressure.
Intraday trading volume for Ethereum is $5.6 billion. This means that there was an increase of 7.8%.
On the daily chart, Ethereum price is trading between converging trend lines. If any of these two trend lines are broken, the direction of the next movement will be determined.
Currently, Ethereum price is trading around $1631. While there was a 1% loss during the day, the door of the lower trend line was knocked once again. Interestingly, today's daily candle is showing signs of price rejection at the lower end.
This suggests that buyers are still in the game and are likely preparing for another rally. If this purchasing momentum continues, we could see an increase of approximately 4%. In other words, it can be said that the first upward target of the ETH price is $ 1.1680.
However, the upper trend line needs to be broken for a more concrete sign of a bullish recovery.
Could Ethereum (ETH) drop to $1,500 again?
Ethereum price will continue to move sideways until it violates the trend lines. Pessimistically, if the ETH price falls below the lower trend line and there is a daily candle close below it, supply pressure in the market will intensify. Such a move could pave the way for an extended correction phase and push the price down around 8-10% to the support level at $1,500.
