- Ethereum price has fallen into the $1,600 barrier after tagging the $1,800 liquidity zone.
- ETH price could fall once more towards $1,300 and lower due to the recent price action.
- The uptrend scenario depends on the June 18 swing low at $881 holding as support.
Fictional character James Dalton played by the late great Patrick Swayze, is notorious for having quoted a rule of thumb prevalent in American pop culture "Be nice until it's time to not be nice". A concise explanation for mitigating human emotional responses during tought times. Dalton’s third rule can be applied when investing in challenging market conditions. The technicals can quickly change. It is best to lower your pride before the market lowers your portfolio.
Ethereum price changes the narrative
Ethereum price has recently fallen back into the previous congestion zone, which alters the short-term bullish outlook. Last week, the ETH price displayed optimistic signals as the price hovered above an ascending parallel channel.
On September 13, the bears rejected the ETH price near the $1,800 level, where breakout buyers likely placed their buy stops. The strong bearish engulfing candle came with an uptick in volume and caused a breach through the $1,600 price level as the bulls abandoned ship.
Ethereum price currently auctions at $1,589 as the bulls attempt to re-hurdle the breached 21-day simple moving average. If the indicator cannot provide support, further declines should be expected. A Fibonacci Projection tool surrounding the summer time high at $2,030 and the September 7 low at $1,419 projected into the most recent swing high, shows a one-to-one relationship at $1,289. If the bulls do not provide support near current price levels, a five-wave impulse could commence targeting the one-time Fib level before the speculative Ethereum Merge bull run occurs.=
Traders should keep their eyes on the Ethereum price for a good knife catch scenario. Traders with higher risk tolerence can consider an invalidation point at $1,250, while more conservative traders can use the June 18 swing low at $881 to avoid any smart money liquidity hunts.
In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team
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