- Ethereum price shows bullish divergence on the Relative Strength Index.
- The 8-day Exponential Moving Average has rejected the first bullish attempt after the recent decline.
- Invalidation of all uptrend possibilities depends on the $1,006 swing low holding as support.
Ethereum price shows early signs that the market bottom may not be in.
Ethereum price could decline further.
Ethereum price has traders wondering when a countertrend rally post decline will occur. Since September 12, the decentralized smart contract token has lost 30% market value. A penny-from-Eiffel style decline has occurred in the daily time frame, leaving traders to adopt a sidelined, cautious mentality.
Ethereum price currently auctions at $1305. A bullish divergence was spotted on the the 2-day chart when Ethereum tagged the previous resistance zone at $1,220. The bulls then rallied 10% into the $1,340 barrier, where the 8-Exponential Moving Average (EMA) is positioned. The EMA has rejected the first bullish attempt to rally higher, an early warning for investors with a buy-low-sell-high mentality that a secure market bottom may not be in place.
If the bulls cannot hurdle the $1340 barrier, placing an entry will be ill-advised. The ETH price could witness a further decline to wipe out July 16 liquidity level of just under $1,200. Investors should keep in mind that due to the steep decline, the safest invalidation for any uptrend move should be placed under the July 12 Swing low at $1,006.
ETH USDT 2-Day Chart
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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