Ethereum price could be setting up for a sweep the lows event. Key levels have been identified.
Ethereum price shows subtle bearish cues
Ethereum price shows a common market ingredient that often leaves retail traders on the wrong side of the trend. The common ingredient is a lack of bullish interest. Although the volume profile indicator shows a persistent tapering effect, the lack of bullish influx could be contributing to the penny-from-Eiffel style decline being experienced.
Ethereum price currently auctions at $1,338. The bulls are attempting to find grounds near the 8-day exponential moving average. The most convincing aspect that compounds the idea of a potential bear market underway is the Relative Strength Index reading. The 2-day chart has breached the definitive line in the same, which justifies calling the downtrend just a corrective structure. With that being said, a sweep-the-lows event targeting the June 18th swing low at $880 is now on the table.
The bulls will need to pull off a 2-day reversal pattern and a strong rally to reset the bearish RSI reading. A likely target to reset the RSI could be the $1600 level. If the bulls can hurdle this level, a reasonable bullish scenario would be to retest the August high near $2,000. Such a move would result in a 50% increase from the current Ethereum price.
