Ethereum Price Prediction: ETH Attempts Recovery But the Downside Remains

Ethereum (ETH) is trading at $1,638, 0.3% over the last 24 hours and 5.6% on the week. The appearance of a Doji candlestick on the daily chart points to the ongoing battle for control between buyers and sellers. The intensity of this fight is reinforced by the increase in the daily trading volume which is up more than 56% on the day, according to data from CoinMarketCap.

Ethereum Faces Stiff Resistance at $1,700

After establishing support at the $1,550 demand zone on Sept. 11, Ether began recovering, rising 7.7% to a high of $1,670 reached on Monday. The largest altcoin by market value has been consolidating below the $1,650 supplier zone over the past few days.

This consolidation is validated by the horizontal price action, the flattening of the moving averages, and the sideways movement of the Relative Strength Index (RSI). The price strength at 47 close to the middle line adds credence to the ongoing fight between the buyers and the sellers.

Ethereum's ranging price action has traders frustrated, and whales are sitting on the sidelines biding their time. If the buyers win the ongoing fight, ETH could rise to confront resistance from the $1,700 resistance level, embraced by the SuperTrend indicator's red line and the 50-day Simple Moving Average (SMA).

ETH/USD Daily Chart

The $1,700 supply zone appears to be a very tough barrier to overcome. The Ethereum price has been sealed below this level since mid-August. Support from the wider market would be needed to break this barrier.

If this happens, the 100-day SMA and the 200-day SMA at $1,783 and $1,802, respectively would be the next hurdles to overcome. Shattering these roadblocks would set ETH on a recovery path toward the coveted $2,000 psychological level.

The SuperTrend indicator was still negative since moving above the price on Aug. 17. Note that as long as this chart overlay indicator continues to close above the price, the overhead pressure will remain, pulling Ether lower and lower.

As such, a drop below the ascending trendline at $1,620 would suggest the inability of the buyers to sustain the higher levels. The resultant selling pressure could pull Etereum first toward the $1,550 support level and later to $1,500. This would represent an 8.5% drop from the current price.