Technical Analysis

ETH/USD Price Analysis – June 12, 2023

By LonghornFX Technical Analysis
Jun 12, 20232 min

Daily Price Outlook

Ethereum is currently experiencing significant fluctuations. According to technical analysis, Ethereum recently broke below a symmetrical triangle pattern, losing support at around $1,770. This has caused Ethereum to slide further below $1,740.

Vitalik Buterin, the co-founder of Ethereum, has proposed a roadmap for the future development of the Ethereum blockchain in the face of intense selling pressure. He aims to address high transaction costs and scalability issues by implementing a three-step transition strategy. The key support level for Ethereum, currently facing regulatory challenges from the US SEC, is at $1,800, but it has been breached, with the current price at $1,748.12.

According to IntoTheBlock, the next crucial support for Ether is around $1,500, with a significant number of wallet addresses holding Ethereum at lucrative levels. Buterin highlights three critical transitions—Layer-2 scaling, wallet security, and privacy—that will shape the network’s trajectory.

Scalability remains a major challenge for Ethereum, and Buterin suggests implementing rollups and Layer-2 scaling techniques. Bitcoin and Ethereum have experienced price declines, partly influenced by regulatory actions against cryptocurrency exchanges.

Other cryptocurrencies like Cardano, Solana, and BNB have also faced significant losses recently.

ETH/USD Price Chart – Source: Tradingview

ETH/USD – Trade Idea

The appearance of a bearish engulfing candlestick, followed by a doji candlestick, indicates that sellers dominate the market. Furthermore, the Relative Strength Index (RSI) is below 50, indicating a stronger selling trend.

The Moving Average Convergence Divergence (MACD) also indicates a selling trend, reinforcing the bearish sentiment. As long as Ethereum remains below $1,760 to $1,770, the downward trajectory may continue, possibly targeting the $1,700 support level, which has historical significance. If the price falls below $1,700, it may continue to decline to around $1,647 or potentially even $1,600.

Conversely, if Ethereum breaks above the $1,770 level, it could move toward the following resistance levels at $1,818 and $1,850. These levels could be seen as exit points for some investors. In conclusion, it is crucial to closely monitor the $1,770 level, as a break in either direction could indicate Ethereum’s next major move.



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