ETH is exposed to more downside risks

"Ethereum is more reliable and will surpass Bitcoin." Those are the words of the minimalists who believe Apex Coin will one day become the second-largest cryptocurrency. More top traders are bullish on the asset and claim we are seeing the beginning of a flip this month.

One of the main reasons many are bullish on the biggest knock-off is its impending merger. The merger promises big price increases. Will we see more of an uptrend ahead of the main event? Will it happen this month?

A previous article on BTC highlighted the impact that world order could have on crypto assets. Ethereum is also another token that will fall if the world goes into chaos. One indication of this is the price correlation with stocks.

For example, Nasdaq has an ETH correlation of 0.89. Any price change experienced by a traditional instrument, Alt will do the same thing. When tensions escalate between the United States and China, there is a good chance that the stock market will fall and ETH will fall as well.

Price uncertainty plagues Ethereum
After the hype around the largest Alt, there is a lot of uncertainty about future price movements. Nonetheless, we turn to the charts for answers. The first metric to look at is the RSI.

We have recently observed an even greater decline in the volume of Ether transactions. It is fast approaching 60 and could soon turn bearish.

The last time this happened, Ethereum was down more than 10%. We do not expect to replicate this decline exactly. Nonetheless, we are bound to see more fighting between the two trade factions in the coming days.

7d0bfef9d522be31a6ba43eb165dde89However, moving average convergence divergence is a concern. The indicator has been warning for some time. As of this writing, the 12-MA and 26-MA cutoffs form a bearish convergence.

We have seen two such intercepts without any adverse effect on the counterfeit coins. Based on recent readings of the MACD, we can conclude that Ethereum will undoubtedly experience more price movements, but probably on the downside.

If the bulls build on this, we could see more upside. On the other hand, bears lurk. They may exploit and send tokens in a downtrend. Nevertheless, the pivot point standard provides comfort. Ether is traded above its fulcrum. In short, there is a lot of uncertainty about prices.

We can also gain insight from previous price movements. ETH flipped its first fulcrum resistance earlier today, which many saw as a step in the right direction. A closer look at previous price records suggests that when Ether flips this key marker, it will likely try the next one before a major correction.

August is an average month
34 hasn't been one of the best months for the biggest knockoff coins. Still, Ethereum has fallen 93% (at its highest) and is up more than % XNUMX. It is almost impossible to conclude that the second-largest cryptocurrency by market capitalization would have such a price action.

But, on average, the token is up 11% each April. It is currently up more than XNUMX%, which means it has outperformed the average. There could be more uptrend or downtrend in the coming days.

If history repeats itself, we may soon see the largest Alt above $2,200. Here are the key levels to watch

Important support and resistance
Main support: $1300, $1500, $1800

Key resistance: 2445,2150

f095cdf8513cf4104b03f7d46111bc78There are a lot of strict markers about what level to watch. Currently trading at $1,890, the first level to watch is $1,800. Recent prices suggest that Ethereum could test the above markers in a matter of hours if demand concentration drops.

We may also see it flip because it's not one of the toughest obstacles. ETH broke above it five days ago and has since enjoyed more of an uptrend above it. The next positive hurdle to watch is $1,580.

We might consider this level to be one of the toughest because there are several downtrends that stop there. A reversal of this key support could lead to a further downtrend and Ethereum could go as low as $1,300.

Looking for more uptrend, we may try to break through resistance at $2150. Ethereum has not tested the marker since September. However, it was one of the hardest to resist because previous attempts had not been successful. Pressure to buy is likely to increase. This could cause this important level to flip.

In crypto, if you want to take advantage of the next bull market, you need to have a quality community, where people can stay together and stay perceptive. If you just a person, look around at a loss, found that no one, want to stick to it in this industry is actually very difficult.

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