Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.

USDT dominance is a metric that measures the market capitalization of the stablecoin Tether as a percentage of the total market capitalization. This statistic has risen from 5.7% to 8.13% in just over a week. At the same time, Ethereum and Bitcoin saw significant selling pressure and posted huge losses in the past week.

ETH’s market structure was bearish at the time of writing and a move above $1300 would be needed to reverse the bias into bullish. News regarding 3AC hinted that further lows may be expected.

ETH – 12 Hour Chart

Source: ETH/USDT on TradingView

In February and March, ETH marched up and made a series of higher lows to suggest an uptrend in the game. In late March, the previous high of USD 3250 was broken and ETH was able to test the USD 3580 resistance level.

The price fell to the $3000 support level in April. But by then, the sellers were able to seize the initiative. In mid-April, Ethereum fell to $2800 and then retested $3000 as resistance.

The $1850-$1950 area was a demand zone that held up against selling pressures in May. A week into June, this support area began to collapse. In the past week alone, ETH has suffered nearly 40% losses.

Source: ETH/USDT on TradingView

The indicators unanimously showed bearish momentum and heavy selling pressure. The RSI stood at 27.43 and has been below the neutral 50 line since early April. This showed that the downward trend has not yet abated. Combined with the drop below the $150 demand zone, it looked like there were more downsides to be seen.

The Awesome Oscillator was also well below the zero line signaling bearish pressure. The A/D indicator has been sinking lower and lower over the past two months, capturing the solid sales volume behind ETH.

The DMI also showed an intense bearish trend, with both the -DI (red) and ADX (yellow) both above 20.

Conclusion

The price action saw a series of lower chart highs over the past eight weeks. The indicators also showed momentum and volume in favor of the sellers. The $1300 mark is one to watch out for in the coming weeks.



This post Ethereum: Estimating the Chances of ETH Dropping Below $1050

was published first on https://ambcrypto.com/ethereum-assessing-the-odds-of-eth-descending-lower-than-1050/

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