• Ethereum was trading at $1832 at press time and has been in a lower timeframe downtrend since 17 July.
• The range formation appeared to have broken down, but ETH clung tenaciously onto the $1825 level.
• On Monday, 7 August, Ethereum fell from $1836 to $1808 indicating heavy selling pressure.
Overview
Ethereum [ETH] was trading at $1832 at press time and has been in a lower timeframe downtrend since 17 July. The bulls were unable to defend the $1900 support zone and did not put up much of a fight in the weeks since then. The range formation appeared to have broken down, but ETH clung tenaciously onto the $1825 level. On Monday, 7 August, Ethereum fell from $1836 to $1808 indicating heavy selling pressure when short positions were opened en masse.
Possibility of Reversal
A bounce in ETH prices searching for liquidity near $1850 was a possibility as the lack of volatility meant traders looking to enter the market can wait for more favorable conditions. However, neither buyers nor sellers were dominant as evidenced by data from Monday which highlighted heavy selling pressure when ETH slid toward $1800. Therefore an ETH move to the region of $1850-$1870 could be possible followed by a swift bearish reversal if liquidity is found there.
Demand Zone
To the south, there exists a demand zone between$1750-$1770 which could attract Etherum prices back down if bears succeed in forcing it into that region due to fair value gap on H4 chart present there.
Profit Calculator
Traders should use an Ethereum Profit Calculator in order to assess their portfolio before attempting any trades with Etherum as its current price stands just above 1800 dollars and fluctuates rapidly according to market conditions
Disclaimer
The information presented does not constitute financial advice or investment advice and is solely writer’s opinion; thus readers should exercise discretion before taking any action based on this article’s content .