Ethereum price analysis: ETH/USD bears eye $100.00
|- ETH/USD broke below the channel support at $110.00.
- The RSI setup implies heightened downside risks.
Ethereum is changing hands at $107.70, losing 4.5% since this time on Sunday. Ethereum, now the third largest coin with a market value of $11B, broke the lower border of the short-term range at $110, creating a bearish setup the next sessions.
Ethereum is moving in sync with other digital assets as there are no ETH specific factors that could have driven the decline. The market has lost its safe-haven status, and now it is dominated by speculative bearish sentiments fuelled by the year-end sell-off on global financial markets.
Ethereum's technical picture
The ultimate bullish goal is still located at $120; we need to clear it to mitigate the bearish pressure. However, considering the general bearish momentum, this target seems to be out of reach.
The first hurdle is created by DMA5 at $112.60. It is followed by $114.00 resistance (SMA50, 4-hour) and by a strong barrier formed by a confluence of SMA100 and SMA200 (1-hour) at $114.50.
On the downside, the first support comes with $105.80, which is the lowest level of the Asian session. It is followed by November 27 low at $100.89 and psychological $100.
The Relative Strength Index stays close to the oversold territory and points to the downside; it means that the bearish momentum is likely to gain traction in the sessions to come.
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