The second largest cryptocurrency, Ethereum, comes under selling pressure as buyers lose their momentum against sellers. Buyers’ lack of strength resulted in a downside movement in ETH from the yearly high of $2138.
Last week’s Uncertainty prevents ETH’s potential upside
Retail traders preferred to stay away from making any new trades due to market uncertainty. ETH has gained only 0.43% in the past week, and the weekly price candle has made a long-legged doji. Traders are waiting for a range breakout, either above the weekly candle ($1965 level) or below the weekly low of $1791, for a direct move ahead.
At the time of writing, Ethereum price trend follows a bearish path while the ETH/US Dollar pair is trading down 2.89% overnight at $1850. Similarly, Ethereum price remained down 0.56% at 0.06469 BTC against the bitcoin pair.
Bears Eye on 50 SMA for Aggressive Sell-off
Bears are waiting for a 50-day simple moving average breakdown to dump ETH aggressively, because it is acting as support in intraday trading session. Meanwhile, the bears assumed the Fibonacci retracement’s 0.786 level as a short-term defensive zone (mentioned on the chart).
Sellers’ participation could be seen in the market as the trading volume almost doubled to $8.6 Billion in the last 24 hours, according to CoinMarketCap. Today’s price closing below the 50-SMA could prompt sellers to take ETH back 6% down to the 100-SMA as the RSI shows bearish strength.
ETH/BTC Pair Appears Extremely Weak
Ethereum found rejection at a long-term descending trendline against bitcoin. In the near term, the $0.0622 BTC support level remains a zone to defend for bulls. Buyers can see a bloodbath below the key support level.
ETH 4-hour Chart Shows the Deadly Formation
On the hourly chart, price action is forming a head and shoulders pattern in the near term. If traders follow this signal for this week, Ethereum price could decline towards the $1730 level. On the other hand, if the buyers manage to hold ETH above 50-day moving average, the price can move back up as soon as the selling pressure eases down.
Also Read: Ethereum Price Drops Below $2000! Risk Alert for Bulls
