Crypto analysis: August NFP data impact on Ethereum price

 Crypto chart analysis (ETH):

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

 

Crypto analysis


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.

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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.

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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.

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