Ethereum Price Update: ETH Shows Weakness, Rejects $2,700 and Indicates Potential Decline (August 12)

Ethereum is once again displaying signs of weakness following its rejection at the $2,700 mark over the past weekend. There is potential for a retracement if trading volume continues to increase, but the situation could deteriorate further given the latest bearish indication.

After breaking down below the critical $2,817 support level for the month, ETH retreated to the yearly low. However, it managed to hold steady at the $2,100 level with a prominent long wick. The cryptocurrency made a recovery throughout the previous week, reaching the $2,717 level, which was the high point for January.

The $2,717 level acted as a barrier to further buying due to multiple rejections, leading to a loss of momentum and a double-top pattern on shorter timeframes. Currently, Ethereum is trading at $2,552 as it continues to lose daily momentum.

With Ethereum failing to retest the monthly breakdown level, a significant drop is anticipated following the latest bearish signal. The key price range to monitor for a potential decline is $1,640, which was the surge level seen last October.

A further pullback to the psychological $3,000 level could present a substantial opportunity for bearish traders before resuming selling pressure. Reclaiming the previous monthly high of $3,600 could slightly shift ETH’s bias towards a bullish sentiment. However, given the emerging bearish setup, negative sentiment may prevail over Ethereum in the coming days.

The current focus lies on Ethereum’s critical level at $2,392, with a probable pullback to the annual low of $2,100. A breach of this level could push the price down to $1,904, the low from last November, before potentially rebounding to the surge level observed in October.

The resistance posed by the January high of $2,717 has been challenging for bullish traders, leading to a gradual decline in price. If they manage to regroup and break above this resistance, the next areas to watch for potential buying opportunities are at $2,817 and $3,080.

Key Resistance Levels: $2,717, $2,817, $3,080
Key Support Levels: $2,392, $2,100, $1,904

At the current spot price of $2,552, the trend for Ethereum remains bearish with high volatility. It is important to note that the information provided is not trading or investment advice, and conducting thorough research is recommended before engaging in cryptocurrency purchases or investments.