Despite a relative market improvement, Ethereum (ETH) remains in a downward trend, experiencing a 14% price decrease in the past week. Technical indicators also signal a bearish trend, indicating increased selling pressure. If this trend continues, Ethereum may test the support level at $1,756 and even drop below $1,700. The Relative Strength Index (RSI) for Ethereum remains weak, showing limited buyer presence in the market. RSI is currently at 34.4, slightly recovering from a temporary drop to 27.4 yesterday. For a trend reversal upwards, RSI needs to stabilize above 50; otherwise, any upward movement will face resistance. On the other hand, the Directional Movement Index (DMI) indicates a strengthening downward trend for Ethereum. The Average Directional Index (ADX) reaching 29.82 confirms the strength of the bearish trend. Meanwhile, the -DI has increased to 37.8, and +DI has decreased to 15.4, showing the dominance of sellers in the market. Additionally, Exponential Moving Averages (EMA) also have a bearish alignment, with short-term EMAs positioned below long-term EMAs, increasing the likelihood of further price drops. Currently, Ethereum is trading below $2,000. If the downward trend continues and the $1,756 support is broken, the possibility of a price drop below $1,700 exists. However, in case of a trend reversal, the first significant resistance for Ethereum would be at $1,996.
