A Nightmare Scenario For Ethereum! Are the Bears Taking Control?
Ethereum (ETH) witnessed a decline as it entered the weekend. After Bitcoin (BTC) tried to trade above $ 17,000, the altcoin lost the psychological level of $ 1,300. According to the time of writing, ETH was trading at 1266 dollars and, according to technical analysis indicators, it may continue its downward trend over the weekend.
Will the Decline Deepen?
If the bearish momentum continues, ETH may find new support levels at $1217 and $1166. December September and October, ETH operated in the range of $ 1,239 and $1,378. November December, an upward break from this range led to ETH gaining over 20% in value and reaching $ 1,682 at the beginning of November. But the market collapse forced a downtrend that led to a major price correction when ETH attempted a rally the last time.
At the time of writing, ETH encountered significant resistance at the 38.2% Fib level, which also doubled as a bearish order block. Technical indicators showed that ETH could fall even lower. The relative strength index (RSI) moved horizontally and withstood the 50-neutral level, taking into account a decline. This may indicate that the exhaustion of buyers may give sellers more leverage.
In addition, the volume at equilibrium (OBV) also moved sideways after creating a slight upward slope. This may have indicated a lack of significant trading volumes to support the buying pressure. Thus, the pressure for purchases may weaken. Therefore, ETH may decline and settle at new support levels of $ 1217 and $ 1166.
However, an intraday close above $1306 may nullify the above downward trend. In such a situation, ETH can start an upward movement despite numerous obstacles towards the 100% and 78.6% Fib pocket levels.
Who Made a Profit on Ethereum?
Despite the recent downward trend, ETH has made gains for its short- and long-term holders. For example, the 30-day market capitalization, realized value (MVRV) was positive from November 29. This situation showed that short-term ETH holders have been making a profit since the end of November.
Unfortunately, ETH has seen a negative sentiment that could delay a more solid bullish momentum that could have been formed at the time of writing. Therefore, if BTC’s sentiment continues its downward trend, selling pressure may occur over the weekend and at the beginning of next week.
However, if BTC regains the 17,000 dollar and maintains its upward momentum, ETH’s market structure may have a clearer bullish structure. Therefore, ETH investors can be more cautious and preferably make a move when the market direction is much clearer.
Disclaimer: The information contained in this article does not contain investment advice at all. Investors should know that cryptocurrencies carry risks due to their high volatility and should carry out their transactions in accordance with their own research.
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