Is it time to sell Ethereum despite the recent rally?

fiverr
Is it time to sell Ethereum despite the recent rally?
Binance


Ethereum is up nearly 40% in 10 days. The coin is now firmly above $1000. It also surpassed the $1,300 resistance level as investors poured into the cryptocurrency drop in July. However, technical indicators suggest that ETH has lost momentum. The coin is now facing a sharp sell-off. Here are some key takeaways:

The momentum indicator on the chart shows that ETH is now overbought.

The coin is struggling to stay above its 50-day moving average at $1,300.

A correction of about 20% is reasonable over the next few days.

okex

Data source: TradingView

Ethereum Price Analysis and Forecast

During the period from July 15th to July 25th, ETH showed a strong upward trend. The coin has gained 40% over the period as the broader market recovered from its July lows. But that strong momentum has now slowed. ETH has pulled back sharply and is now hovering above the 50-day moving average at $1,300. A break below $1,300 could spark a sharp sell-off that could eventually push ETH to $1,180.

Nonetheless, an analysis of previous ETH trading history shows strong demand at $1,550. In fact, nearly 586,000 unique addresses purchased 5.1 million coins for $1,550. Our bearish outlook will be invalidated if ETH reverses the current downtrend and rebounds to $1,550.

However, this is not easy. For example, ETH is overbought. This leaves the least room for a strong uptrend. The Tom DeMark (TD) serial indicator is also flashing a “sell” signal. All of these factors strongly confirm our prediction that a significant sell-off of ETH is highly likely.

Will ETH rise again in the short term?

For now, the best-case scenario is for ETH to stay above the 50-day SMA at $1,300. If this happens, we could see a period of sideways trading as the coin tries to generate demand.

However, the more likely outcome is that ETH will end up in the red in July. In the next 14 days, the coin may even drop below $1,000.

Blockcard

Be the first to comment

Leave a Reply

Your email address will not be published.


*