Ethereum Price Key Highlights
- Ethereum broke below its latest consolidation pattern, indicating that losses are in the cards.
- Price is still trading inside a descending channel on the daily chart and looks ready for a test of support.
- But first, the mid-channel area of interest could attract some buyers since it’s close to the long-term lows at $150.
Ethereum price could be in for more declines as it bounced off the descending channel resistance and is making its way back down.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is likely to gain traction. In that case, ethereum could head for the bottom of the channel around $50 or at least until the lows at the $150 area of interest.
Stochastic is heading south so ethereum price could follow suit while sellers have the upper hand. This oscillator has plenty of room before reaching oversold conditions or indicating exhaustion among sellers, so bearish pressure could stay in play for longer. RSI also has some room to head lower but looks ready to turn back up, possibly signaling a pickup in bullish pressure enough for another test of the channel top.
ETHUSD Chart from TradingView
Risk sentiment hasn’t been in favor of cryptocurrency gains in the past few days and it doesn’t help that regulatory developments are spelling grim odds for further progress either. There have also been jitters ahead of Nouriel Roubini’s testimony in Congress this week as he is known for taking a critical stance against cryptocurrencies and repeatedly calling bubbles.
With that, his remarks could continue to keep a lid on ethereum and its peers, unless there are any major positive developments before the week comes to a close.
