Ethereum, direct threat to $1,800..."Could pretend to rebound and then break again"

▲ Ethereum (ETH)/ChatGPT generated image

A technical warning has emerged that if Ethereum (ETH) is pushed down around $2,080 and fails to recover the 100-day moving average, it could quickly open up to the $1,800 demand zone.

According to crypto media outlet Cryptopotato on May 27 (local time), Ethereum is trading at $2,080, and downward pressure continues. On the daily chart, Ethereum continued its bearish trend after being blocked by resistance around $2,400 in mid-May, and the 100-day moving average is acting as a resistance line around $2,200. Although the bottom of the ascending channel is barely maintained, the Relative Strength Index has fallen to the 35-40 range, indicating a dominant selling pressure.

The downside reference point is the $1,800 demand zone. Cryptopotato analyzed that this zone is approximately $280 lower than the current price, and this gap could quickly narrow if the bottom of the ascending channel breaks. Conversely, for the daily structure to stabilize, it must at least reclaim the 100-day moving average, and recovering $2,400 was presented as a key condition to change the mid-term trend.

On the 4-hour chart, a potential inverse head and shoulders pattern is forming. The left shoulder was formed around $2,100, the head around the $2,000 low, and the current price is analyzed to be in the process of forming the right shoulder. The neckline is around $2,150, and Cryptopotato stated that if this level is broken, a rebound above $2,250 is possible, and the $2,400 supply zone could open up again.

However, this pattern is not yet confirmed. The right shoulder must hold above the $2,000 support zone, and the 4-hour closing price must break above the $2,150 neckline for it to be a technically significant reversal signal. Conversely, if the right shoulder breaks, the pattern will be invalidated with a drop below $2,000, and a path towards the $1,800 zone could open up.

On-chain indicators show that the available supply for sale remains low. Ethereum exchange reserves are currently 14.8 million ETH, representing a sellable supply close to the lowest level in recent years. However, the slight increase from 14.4 million ETH in early May to 14.8 million ETH is noteworthy. If holders continue to move their assets to exchanges at current price levels, additional selling pressure could be added to the already fragile price structure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*