ETHUSD Might Face a Massive Decline as Bearish Divergence Emerges

The market is bullish, as evidenced by the daily period price chart, which shows that higher highs and higher lows are continuing to build. However, as it creates lower highs and lower lows, the Relative Strength Index (RSI) drops. The price of ETHUSD may drastically decrease as a result of the divergence between the RSI and the price.

However, it is anticipated that the market’s general trend will continue to be bullish. The current trading range of ETHUSD lies between the $2147.90 and the $1369.80 price levels. The current phase of the uptrend began after the break and retest of the $1369.80 price level. The impending downward correction is therefore not expected to exceed the $1369.80 demand zone.

ETH Key Levels
Demand Levels: $1677.00, $1369.80, $1071.00
Supply Levels: $2142.90, $2445.00, $2716.40

What Are the Indicators Saying?

The market’s overall trend has been bullish ever since the sell-side liquidity grab below the $1190.00 price level. The Moving Average provided a long signal in response to a change in the market structure. More bulls flooded the market after the long signal, as the price burst through the prior barrier level at $1369.80. The price fell into the discount zone to fulfill the buy orders at $1369.80 as a result of the bulls leaving the oversold condition. Currently, it appears likely that the price will plunge into the trading range’s discount region. This is expected because of the RSI’s (Relative Strength Index) bearish divergence indication.

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