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Ethereum price is joining the rest of the cryptocurrency market in another selloff round. The pioneer smart contract token is in the middle of a breakdown that may soon touch $1,700 and perhaps continue to $1,600.
The widespread losses have seen Bitcoin lose over 5% of its value in the last 24 hours to trade marginally above $30,000. Ethereum is grappling with 7.6% in losses while more declines seem apparent in the near term.
Ethereum Price Freefall Gains Momentum
Ether continues to trade within the confines of a descending parallel pattern, as seen on the four-hour chart. A recent rejection at the upper boundary (a resistance reinforced by the 50 Simple Moving Average (SMA)) caused bulls to lose balance.
The correction reported on Monday failed to secure support at $1,850 (instrumental in stopping last week’s losses). As the price action explores downstream levels, bulls hope to bounce back at the channel’s lower boundary.
Nonetheless, most indicators seem to have flipped massively bearish, accentuating the sellers’ grip on ETH. For instance, the Moving Average Convergence Divergence (MACD) recently affirmed a sell signal that occurred when the 12-day Exponential Moving Average (EMA) crossed below the 26-day EMA. In addition, the MACD is moving lower beneath the mean line, thus validating the bearish outlook.
ETH/USD four-hour chart
At the same time, the Relative Strength Index (RSI) emphasizes the aggressive bears’ grip. Hence, Ethereum’s path with the least resistance will remain downward in the short term, perhaps until formidable support comes up.
Holding above $1,700 is crucial for the resumption of the uptrend and will shift the bulls’ focus to $2,000. Otherwise, closing the day below may deepen the sellers’ reach, with losses gaining traction to $1,600.
Ethereum Price Intraday Levels
Spot rate: $1,732
Trend: Bearish
Volatility: High
Support: $1,700
Resistance: $1,880 and $2,000
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