- Ethereum shallow recovery bites back at the bulls as sellers remain in control.
- ETH/USD formed a weekly high at $183.13 before the current correction set in.
- The path of least resistance is downwards; technical indicators suggest.
Ethereum price is still grappling with acute selling pressure. This is happening despite the shallow recovery from the recent support area at $162. Besides, many analysts, investors, and traders have in the recent past expressed their lack of faith in Ethereum’s performance in the near future.
At press time, Ether is valued at $174 following a bear action from the failed breakout above $180. ETH/USD formed a weekly high at $183.13 before the current correction set in. Both eh 50 Simple Moving Averages and the 100 SMA 1-hour could not cushion the crypto from declines. Moreover, the support (now resistance) provided by the 61.8% Fib retracement level taken between the last drop from $183.13 to a swing low of $156.89 and the trendline did little to help the buyers.
Ethereum is flirting with the 50% Fib retracement level but its immediate upside is limited by the 100 SMA 1-hour. The path of least resistance is downwards; technical indicators suggest. The Moving Average Divergence Convergence is sliding lower below the mean line (0.000) while the visible negative divergence highlights the intensifying sellers’ grip. Also bearish is the Relative Strength Index (RSI) which is almost brushing shoulders with the oversold territory. In the near-term correction above $180 hurdle will establish the foundation for the next leg to $300. For now, Ethereum must ensure $170 support is defeded by all means.
ETH/USD 1-hour chart
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ETH/USD formed a weekly high at $183.13 before the current correction set in.