Ethereum (ETH) Price Risks of facing 21% depreciation, Head & Shoulder Weekly Breakout On Edge

Ethereum (ETH) price is trading in red for the straight third day with an almost 1% decline on Wednesday.  The major trend remains downward following the descending trendline from the highs of $4,784.50 on the daily time frame. A combined factor of global market headwinds and existing bearish pressure is contributing further to downside momentum.

• Ethereum’s (ETH) price remains under pressure on Wednesday.
• ETH price consolidates near $31k, expects a bounce back to $34k.
• Bulls could make a U-turn once the global crypto market shows signs of reversal.

Ethereum losing NFT Market Share to Solana- JP Morgan

JP Morgan reported that Ethereum’s dominance in non-fungible tokens (NFTs) has been shrinking continuously since August. The high gas fees and congestion are responsible for the move. However, ETH finds some support following the Cosmos Exchange Osmosis announcement to expand to Ethereum assets with Gravity Bridge.

Important Strong Confluence near $29K imp to hold

On the weekly chart, the ‘head & shoulder’ pattern resulted in almost 40% depreciation from the 2021 highs of $4,867.81. Now, Ethereum’s price is standing at a crucial juncture near the horizontal support line of $2,990. This also coincides with 50-DMA, thus making it a crucial level to trade.

However, on the 4-hour chart, there is a bullish piercing formation near the session’s low of $3,048.64. The red candle is being followed by a strong green candle but the bulls could not gather strength to breach the day’s high of $3,194.28. This scenario keeps pressure on the bulls near the higher levels.

Now it will be interesting to watch if the price could be able to hold the psychological level of $30K. The Relative Strength Index (RSI) is close to being oversold. This could help the bulls to push beyond this level.