- Ethereum engages strong reverse gears as declines remain unstoppable.
- Investors brace for a rollercoaster as overhead pressure intensifies on account of a double-top pattern.
- Ether must regain the ground above $1,500 and association the 50 SMA to come out of the woods.
Ethereum’s recovery from the dip under $1,300 at the beginning of the week suffered rejected at $1,650 amid intense selling pressure. The bearish double-top pattern highlighted on Thursday is impacting the price, leading to ongoing losses. Several areas have been ignored, although at first, they seemed formidable enough to halt the losses.
For instance, the 50 Simple Moving Average (SMA) on the 4-hour chart, as highlighted at $1,520. In the meantime, Ether has extended the bearish leg beneath $1,500 and is exchanging hands at $1,480.
If support at $1,440 fails to hold, investors should get ready for a roller coaster swing to areas under $1,300 and eyeing a robust, lower, and robust, perhaps at $1,400. The Moving Average Convergence Divergence (MACD) adds weight to the bearish outlook as it draws close to crossing under the midline line.
Consequently, the MACD line (blue) recently crossed below the signal line, further cementing the bears’ influence over the price. The MACD is vital technical indicator traders use to identify entry and exit positions in the market. For now, the technical seems extremely bearish for Ether, thus the expected downswing to $1,200.
ETH/USD 4-hour chart
UNI/USD price chart by Tradingview
It is worth mentioning that a daily close above $1,500 will help prevent the losses targeting $1,200. However, Ether will be stuck in the woods and may need to recover the ground above the 50 SMA to secure formidable support.
On the upside, the impact of the double-top pattern is apparent. To bypass the overhead pressure, Ethereum bulls must chart a new path toward $2,000 by first taking down the hurdle at $1,650 and later $1,700.
Ethereum intraday levels
Spot rate: $1,480
Relative change: -60
Percentage change: -4
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