Ethereum Price Analysis: ETH Loses 30% Since September 12

Ethereum Price Overview

Ethereum (ETH) has experienced a significant decline, losing 30% of its market value since September 12. This drop has left traders cautious, questioning when a countertrend rally might occur. Currently trading at $1,326.88, ETH shows early signs that it may not have reached its bottom in the current crypto bear market.

Current Price Action and Resistance Levels

A bullish divergence was recently spotted on the 2-day chart, with ETH's price tagging the resistance zone at $1,220. This led to a 10% rally toward the $1,340 barrier. However, the 9 Exponential Moving Average (EMA) line, currently at $1,371.22, is acting as resistance, limiting further upward movement.

Technical Indicators and Trading Risks

The continuous buy volume dominance in ETH's charts suggests bulls are preparing for another push toward resistance levels. However, opening trades at this juncture is risky, as ETH's price could decline further to test the liquidity level near $1,200, last seen on July 16.

Key Levels to Watch

Traders should be aware of the July 12 swing low at $1,006, which serves as a critical invalidation point for any potential uptrend. This level underscores the importance of caution, as ETH's recent steep decline may not yet be over.

Conclusion

While there are signs of bullish divergence, the overall outlook for Ethereum remains uncertain. Investors should exercise caution and consider the risks of further price declines before making any trading decisions.

Disclaimer: The views and opinions expressed in this analysis are for informational purposes only and should not be considered as investment advice. Readers are advised to conduct their own research and due diligence before taking any action.