Ethereum market overview: ETH/USD unstoppable declines butcher $170 support

Ethereum has not been spared by the ongoing bearish pressure on the market. As discussed in the crypto market update, a reaction to a double-top pattern could have triggered the reversal. However, the declines are spread across the board. For instance, Bitcoin is struggling to find balance above $5,150 while Ripple is attempting a bullish reversal above $0.33 support.

The buyers increased their grip on the price yesterday above the short-term support that had been established at $175. The price zoomed above $180 and formed highs around $185. However, no progress was made above this level resulting in the formation of a double top pattern. The pattern is interpreted as a trend reversal especially when it appears amid a higher trending market. The declines failed to find balance at the 50 SMA and 100 SMA 1-hour. The bears' confidence increased on Thursday sending Ethereum below $175 and the next support target at $170.

Meanwhile, Ethereum is trading at $167 amid a growing bearish momentum. The bear pressure seems unstoppable which means ETH/USD could test the support at $165. If the price happens to clear this level, support will be sort for at $160. A key reversal level at $155 (last week’s support) is a definite turn around point due to the expected increase in demand for ether.

Technical analysis shows that Ethereum is on the verge of a further breakdown. The Relative Strength (RSI) is currently in the oversold (levels it has not reached since the beginning of April). The MACD is trending much lower in the negative territory with the divergence from the signal line increasing.

ETH/USD 1-hour chart