Ethereum price crash halted, but the point of max pain is yet to come


  • Ethereum price has broken the uptrend’s backbone trend channel and corrected 10%.
  • ETH price sees bears squeezing price action against the current support.
  • Another break lower would see another 8% to 18% of devaluation for ETH price action.

Ethereum (ETH) price saw its uptrend grind to a halt on Tuesday as ETH price shed 10% of its value. During the rout, many bulls got stopped out of their long positions, and this saw an acceleration of buy-side demand declining. Now bulls are not picking up ETH coins at $4,060, which opens the door for bears to push the price even further towards $3,687 or $3,391 in the near term.

Ethereum price sees demand-side dry up as bulls wait for stabilization of ETH prices

ETH price sees further bearish pressure building against $4,060, and another leg lower looks almost inevitable. Even with the Relative Strength Index already sharply lower, it still has room to go before hitting the oversold area. Bears will, however, have their work cut out as they face the monthly pivot and the 55-day Simple Moving Average (SMA) at $3,911.

ETH/USD daily chart

ETH/USD daily chart

A further correction to the downside would be expected to meet support and slow down at the level of both the aforementioned pivot and the 55-day SMA. Bears will have taken more profits along the way, highlighting $3,687 as a possible endpoint for the ETH correction. Bulls will want to pick up ETH price at this level, given it will represent a solid discount and try to push price-action back up towards or above $4,060.0




 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Why Bitcoin has entered a new bear market

Bitcoin price has tumbled to a multi-month low below $33,000, as the leading cryptocurrency loses 50% of its value from its all-time high in November 2021. This marks the second-worst sell-off since the bear market that spanned from 2018 to 2020. Bitcoin bulls have definitely taken a backseat.

More Bitcoin news

Mastercard exceeds earnings expectations in Q4, aims to increase Ethereum scalability

Mastercard has seen its fourth-quarter net income rose to $2.38 billion from $1.79 billion and its reported revenue of $5.22 billion, exceeding analysts' expectations. CEO of Mastercard stated that the firm aims to increase Ethereum scalability.

More Ethereum news

XRP Price Prediction: One wrong move could put Ripple at risk of a 70% nosedive

XRP price is at risk of a significant move to the downside after it dropped below a critical line of defense. If Ripple slides below $0.58, the bulls can expect further losses as the prevailing chart pattern puts a 70% decline on the radar.

More Ripple news

Sandbox Price Prediction: 40% bull rally at risk of terminating

Sandbox price has made some wild price swings this week. From the open, it has moved from $3.34 to $2.55 – a 23% drop. Then, SAND rallied nearly 40% to $3.55 from the weekly low at $2.55. Selling pressure resumed upon hitting the weekly high.

More Sandbox new

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP