Ethereum Price Analysis: ETH/USD looks forward to this head-and-shoulders pattern

Ethereum bears continue to punch holes in the bullish 'balloon' even as the storm gets more violet. Almost half of the gains accrued since the beginning of January have been trimmed. Ethereum price is exchanging hands at $216 after a minor recovery from $210 (weekly low). The second-largest crypto is down 3.318% on the day. The Asian session on Thursday has been characterized by increased selling activities and high volatility levels.

Ethereum price technical update

ETH/USD is trading at $216 at the time of writing. Support has been established at $210 to help shield the crypto from further losses towards $210. However, in the event the short term support gives in, Ethereum price is likely to find support at the confluence formed by the 50% Fibonacci retracement level taken between the last drop from $288 to $116 around $200 and the 50-day SMA.

Possibility of a head-and-shoulders pattern reversal

If Ethereum price continues to take a breather above $210, there is a chance that a head-and-shoulders pattern will complete its formation. A bullish reversal from the head and shoulders pattern is likely to send ETH/USD in a trajectory eyeing $300 once again.

Meanwhile, the downward momentum continues to carry more weight, especially with the RSI almost sinking into the oversold region. The momentum indicator also shows that ETH/USD downside is likely to last longer through the coming sessions.

ETH/USD daily chart