- Ethereum hit a wall slightly above $1,700, opening Pandora’s box for losses under $1,600.
- The least resistance path is downwards based on the MACD.
Ethereum abandoned the mission to lift to $2,000, slightly above $1,700. Losses came into the picture with Ether falling below several key support levels, such as $1,650 and $1,600. At the time of writing, Ethereum is trading at $1,570 amid the bearish call to dip further.
The entire cryptocurrency market is in the red, led by Bitcoin’s dip to $52,000. If Ethereum does not find support at $1,500, we can anticipate another dip toward $1,400 or the descending channel’s lower boundary support as illustrated on the 4-hour chart.
Meanwhile, Ethereum’s downtrend has been validated by the Moving Average Convergence Divergence (MACD). The indicator is used in technical analysis to show positions to buy the dip and sell the top. When the MACD line (blue) crosses beneath the signal line, traders are advised to sell.
On the other hand, it is a call to buy when the MACD line crosses above the signal line. The indicator also shows the general trend in the market. At the time of writing, the least resistance path is downwards.
ETH/USD 4-hour chart
The same bearish outlook has been validated by a death cross pattern on the 4-hour chart. This pattern comes into the picture when a short term moving average crosses under a long term moving average. For instance, the 50 Simple Moving Average (SMA) recently crossed below the 100 SMA, implying that the trend had flipped bearish.
Ethereum will resume the uptrend if it holds above $1,600. A move such as this will show the investors that recovery is possible. Gains toward $1,700 will come into the picture as buyers join the market from the sidelines.
Ethereum intraday levels
Spot rate: $1,570
Relative change: -8
Percentage change: -4%