The crypto trader and analyst Ali predicted in a tweet this morning that Ethereum (ETH) may experience some sell pressure soon. His post follows the recent spike in the number of ETH deposits made on centralized exchanges, as recently indicated by on-chain data.
At press time, ETH’s price was trading at $1,902.60 after a 3.09% 24-hour loss according to CoinMarketCap. This negative daily performance had also flipped the altcoin leader’s weekly performance into the red, which stood at 0.03% as a result. In addition to weakening against the U.S. Dollar, ETH was also down against Bitcoin (BTC) by 1.53%.
Daily chart for ETH/USDT (Source: TradingView)
The crypto’s price has dropped below the 9-day and 20-day EMA lines in today’s trading session. The wick present above the current daily candle suggests that the sell pressure Ali had predicted has already entered ETH’s charts, as bears attempt to push ETH’s price lower.
Before ETH’s price reaches the next key support at $1,800, it will receive some support from the 50-day EMA which was trading at around $1,850 at press time. Should the altcoin’s price reach this level it will either rebound or continue to drop. The recent spike in active ETH deposits on centralized exchanges supports a bearish thesis, however.
A break below the 50-day EMA line will leave only the aforementioned support at $1,800 before a drop to $1,670, should the sell pressure continue. However, bulls may prevent the drop to $1,670 and enter into long positions for ETH, given that it has been trading in a consolidation channel between $1,800 and $2,015 for the last 2 weeks.
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Source: Cryptocurrency - investing.com
