Ethereum Price Prediction: ETH Drops After Flashing Sell Signal

3 Min Read
Last Updated July 23rd 2021

Daily Ethereum ETH Technical Analysis
  • Ethereum price has dropped below $1,600.
  • The MACD in the 4-hour chart shows sustained bearish momentum.

Ethereum price dropped from $1,725 to $1,585 after flashing the sell signal in the TD sequential indicator, in the form of a green-nine candlestick. This Friday, ETH reached an all-time high of $1,751 but has since dropped below the $1,700 and $1,600 psychological levels.

 

Ethereum Bears In Control For Three Straight Days

The Ethereum price is under complete bearish control as ETH makes its way towards the $1,550 support line. The relative strength index (RSI) was on the verge of entering the overbought zone, and is now hovering around 61.

Image: ETH/USD daily

The IOMAP tells us that Etherem price has two moderate support levels on the downside at $1,550 and the 20-day SMA ($1,420). On the upside, the strongest resistance is at $1,650 wherein 11,450 addresses had previously purchased a little less than 7.25M ETH tokens.

Image: IntoTheBlock

The 4-hour Ethereum price chart shows two negative signs:

  • The MACD indicates increasing bearish momentum.
  • The parabolic SAR has reversed from bullish to bearish.

As things stand, ETH is trending between the 20-bar and 50-bar SMAs.

Image: ETH/USD 4-hour

 

Ethereum Gas Fees Back In Reasonable Levels

Ethereum's fees have finally dropped after reaching its all-time high on $1,751. The ETH average fees were sitting at their own all-time high of $25.23. But with this average roughly halving back to $13.72, circulation is less likely to be stagnant due to high costs.

 

Ethereum Is Now Bigger Than Wells Fargo, Morgan Stanley, AmEx

Ether’s (ETH) market capitalization recently reached $200 billion for the first time. This makes Ethereum, a decentralized network, more valuable than several Wall Street giants like Wells Fargo, Morgan Stanley, and American Express. 

Wells Fargo and Morgan Stanley's total market cap is $134.5 billion and about $103.4 billion, respectively. Payments company American Express has a valuation of $93.5 billion. Market capitalization measures the total value of all tokens (or a business’s shares) in existence at the prevailing market price. 

After crossing the recent $1 trillion mark, several projects in the crypto space have reported new all-time highs daily. For instance, Binance Coin (BNB) recently surged by over 25% to set an all-time high of $75.50. As a result, the digital asset became the seventh-largest digital asset by market cap, ahead of Litecoin (LTC). 

Cryptocurrencies have drawn massive institutional attention in recent times. Companies like Grayscale Investments and MicroStrategy are continuing to scoop up Bitcoin. Both entities now collectively own billions of dollars worth of crypto.

 

Ethereum Price Is Expected To Reach These Levels

Ethereum price is likely going to drop to the $1,550 support barrier and may be even to the 20-day SMA ($,1420) before it pushes back up.

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