ETH/USDT trend analysis: back below the $600 mark

TL:DR

  • Ethereum (ETH) is back below the $600 as it fails to establish a higher support.
  • Trading volume has seen a dramatic collapse as volatility finally begins to come down.
  • ETH/USDT will need a strong influx of trading volume in order to continue to set new highs over the $600 mark.

Overview (24-hour)

ETH/USDT opened this trading period at 601.09 USD, before rallying to the trading period’s high of 613.69 USD (+2.28%). The low of this period was 579.34 USD, with ETH/USDT finally settling at 593.67 USD at the time of writing, just 0.48% below the period’s high-low average of 596.52 USD.

The total trading volume for ETH/USDT in this period was 875,505 ETH, compared to 1.5 million ETH in the previous period, representing a decline in trading volume of close to 50%.

The Historical Volatility Index (HVI) rose to 75.54 in this trading period, compared to 56.74 in the previous trading period.

Price Analysis

ETH/USDT trend analysis: back below the $600 mark 1

ETH/USDT opened today’s trading period at 601.09 USD, and after briefly breaking above the 600.00 USD mark to the period’s high of 613.69 USD, began a strong correction, setting the period’s low at 579.34 USD after failing to establish support at the 600.00 USD mark.

At the time of writing, ETH/USDT has settled at 593.67 USD.

Volume Analysis

ETH/USDT trend analysis: back below the $600 mark 2

ETH/USDT started the trading period with a trading volume of 29,253 ETH and a mean value of 43,707 ETH carried over from the previous period. Trading volume spiked briefly at 48,724 ETH as ETH/USDT attempted to break out to set new highs, however, for the majority of the period, trading volume actually contracted, dipping to a low of 6,152 ETH. This brought the mean down to 17,188 ETH.

The trading volume has since risen and at the time of writing sits at 22,584 ETH with a mean value of 20,750 ETH.

Throughout the entire period, the On Balance Volume (OBV) indicator declined significantly The Accumulation/Distribution (Acc/Distr) sharply peaked as the corrections was briefly re-corrected, but had been level throughout the trading period otherwise.

Volatility Analysis

ETH/USDT trend analysis: back below the $600 mark 3

In the last trading period, ETH/USDT had seen volatility remain in the extremely high levels, carrying over from the past few days of trading. This was reflected at the beginning of this trading period, with HVI measuring 14.95 (high). However, volatility has since declined in this trading period, hitting a low of 5.78 (medium).

At the time of writing, HVI reads 6.51 (medium)

Price Prediction

In this trading period, ETH/USDT has seen its trading volume collapse and the momentum that comes along with it fall in sync. This is as the price fails to establish a support at the $600 mark, falling to the $580 levels.

This has been married with a significant decrease in volatility, suggesting the fall in price is coming close to what the market wants. Therefore, as trading volume continues to contract, it is likely that volatility will continue to fall, meaning traders are looking for a price level below the $580 mark.

Expect the bears to remain strong for the time being.

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