Crypto analysis

Crypto analysis: August NFP data impact on Ethereum price

September 07, 2024

Crypto chart analysis (ETH):

Ethereum (ETH) is down nearly 6% on Friday after the US released its worrisome August Nonfarm Payrolls (NFP) data

Ethereum (ETH) is currently trading around $2,220, experiencing a 6% drop on Friday. Over the past 24 hours, the cryptocurrency saw liquidations totaling $35.08 million, with long positions making up $26.67 million and short positions accounting for $8.42 million. This significant activity reflects the ongoing volatility in the market.

On the daily chart, Ethereum has fallen below a descending trendline within a symmetry triangle. This pattern suggests that ETH's price could decrease further to around $2,100 in the coming weeks before potentially rallying. Similar patterns of decline and recovery were observed between August and November 2022 and from July to October 2023.

If Ethereum follows historical trends, it might hover around the $2,100 level before rallying to challenge the $2,817 resistance. Should it successfully surpass this level, ETH could aim for its yearly high resistance at around $4,093. However, a daily candlestick close below the lower ascending trendline of the symmetry triangle could push ETH down to the support level at approximately $1,540.

Indicators such as the Relative Strength Index (RSI), currently at 33 and trending downward, suggest that ETH is moving toward the oversold region. The Stochastic Oscillator's %K and %D lines indicate a similar trend, hovering around the oversold area. Additionally, the Awesome Oscillator has shown consecutive red bars below the zero line, indicating strong bearish momentum.