After a failed attempt to move the price above $2600, Ethereum fell towards $2475 leaving ETH vulnerable to weakened momentum and increased volatility in advance of two important U.S.-based events.
The following is a summary of the information that you will find on this page.
- Ethereum fell by about 2% to around $2475.
- Bollinger Bands of 4 hours place immediate support at $2.469, and resistance at $2.550.
- The daily MACD is now bearish. An ADX of 17.73 indicates weak trend strength.
- Volatility could continue to rise due to the Federal Reserve’s decision and CLARITY Act.
Ethereum Price drops below $2,500
Crypto.news reports that Ethereum (ETHOn Sept. 15, the price of, which had dropped by approximately 2% in the 24 hours prior to that date, was near $2475 This decline was a result of a strong rejection at $2,600 where buyers were unable to maintain a breakout.
The chart for the last session shows ETH trading in a range between $2465.60 to $2520. At the time this article was written, the token had fallen by 1.65%.
The price action is volatile, after ETH climbed to $2600 in the previous session but quickly gave up the move. After the reversal, the token fell below the psychological $2,500 level. It then returned to the range of trading that had been in place since late August.
Daan crypto Trades, a cryptocurrency trader described This move is prepositioning for the CLARITY act vote in the U.S. Senate, and the Federal Open Market Committee meetings. Analysts claim that traders who were short leveraged positions had been removed by the first rally before the market decline.
This pattern is a sign that traders are reducing their risk in anticipation of events which may affect monetary policies and U.S. regulations on digital assets. Daan said that if the bill is not passed, it could cause another decline before the Fed’s decision.
Ethereum is nearing 4-hour support due to a weak momentum
On the 4-hour charts, ETH is now below the Bollinger Band’s midpoint, which stands at $2.509.64. The Bollinger Band lower limit is at $2.469.41. This places the current price near its first immediate support for volatility.
Breaking below this band will expose recent intraday bottoms at $2,450. Before attempting to move up towards the upper Bollinger Band, at $2.549.86, buyers would need the recover midpoint.
The Average Directional Index stands at 17.73. A reading below 20 indicates that there is no strong trend. Therefore, ETH might remain within a narrow range as swings get more intense.
Also, daily indicators indicate a waning momentum. The relative strength indicator has fallen to 56.89, from recent highs. It is now below the moving average at 62.14. ETH does not appear to be oversold. There is room for more downside if buyers maintain control.
The MACD daily line is still positive, at 72.86. However, it has dropped below the line of signal at 90.93. Histogram is now negative, at -18.07. This shows that momentum for the rally in August has weakened.
The next ETH move is framed by liquidation clusters
CoinGlass’s one-week liquidation heatmap shows a concentration of leveraged positions immediately below the market around $2,450–$2,470. The price of ETH is falling towards that region, increasing the risk for further volatility if it moves into the cluster.
A stronger pocket of downside liquidity appears around $2,390–$2,410. A failure to maintain the current range may push price towards this zone, especially if leveraged short positions have to be liquidated.
Liquidity also sits above ETH around $2,535–$2,580, followed by brighter concentrations near $2,630 and $2,650. If the price rises above $2.550 it could trigger a short-term liquidation and allow for another push at $2.600.
The heatmap doesn’t determine which direction the next move will be. This heatmap identifies the areas in which forced closing of positions could increase volatility once ETH reaches these levels.
On the broader chart of the day, the Fibonacci Retracement 0.786 at $2.253.61 still remains as the primary structural support. The next significant Fibonacci upside level is $2,833.75, however, ETH first has to overcome the resistance in between $2550 and $2600.
Analysts have identified $2,550 to be the main resistance.
Ted Pillows of the crypto analyst firm Ted Pillows stated that ETH’s upward movement would be limited until the currency reclaimed $2,550 at the weekly level. The chart shows that the major resistance will be around $2.860 and the support at $2.175 if the weekly ceiling is raised.
Short-term traders can find more precise levels in the immediate structure. If ETH moves above $2.510, it will return to its middle Bollinger band for the 4-hour time frame. A break of $2.550, however, would weaken this current bearish set-up.
The $2450 liquid area is at risk if the price closes below $2465 If the sellers are able to clear this zone, the $2,400 target becomes visible before the $2,254 daily support.
Fed CLARITY Act keeps US traders alert
The macroeconomic conditions in the United States could decide whether ETH maintains its current support. The 10-year Treasury rate moved up to 5% while oil prices rose above $107 per barrel. This increased concerns about inflation being maintained by higher energy costs.
CME FedWatch showed that markets assigned a probability of above 90% for a rate hike by 25 basis points at the Fed meeting on September 16, according to Reuters. The higher yields on Treasury bonds can help reduce the demand of risk assets because they give U.S. fixed-income investors greater returns.
Vote on procedural motions in the Senate CLARITY Act Addition of a regulatory catalyst. ETH could remain susceptible to sudden moves in nearby liquidation areas until both issues are resolved.
Disclosure: This article doesn’t represent investment advice. This page is intended for informational purposes only.
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Source: crypto.news
