Ethereum lost 3% of its value today following the current drawdown across the crypto market. It has formed a bearish pattern and now looks set for a big drop in the lower timeframe.
During the last leg up, ETH touched $2,403 last week and saw a quick rejection there. This came as a result of exhaustion in buy actions.
However, the price pulled back to a weekly low of $2,144 (where it encountered support) and bounced back above the important $2,300 level – a critical trading range since last week.
Unfortunately, the bears intercepted once again and the buying stopped at $2,332 with bearish candle formation as it signalled a double-top pattern on the lower time frame.
It initiated a drop today and slipped below the critical trading range, but the trend still looks bullish on the higher timeframe.
A dip below the current weekly support – which serves as the neckline of the double-top – would confirm a sell-off on the 4-hour chart before the trend shifts on the daily chart. In the opposite direction, a rebound above this weekly low could set the bulls back on track in the short term.
While most top altcoins now paint red due to a significant amount of volume outflow in the past hours – ETH had lost 5% in a week as it slowly lost momentum. More selling pressure may surface in the future.
ETH’s Key Level To Watch
Source : Tradingview
In anticipation, a drop below the weekly low could trigger a big sell-off to $2,030 in the upcoming week. The lower corrective level to consider for support lies at $1,905 and potentially $1,815.
If ETH climbs back above yesterday’s high of $2,332, the next area of interest for the buyers would be last week’s high before advancing higher to $2,500 and perhaps $2,700.
Key Resistance Levels: $2,332, $2,403, $2,500,
Key Support Levels: $2,144, $2,030, $1,905
- Spot Price: $2,234
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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