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Ethereum price mirrors Big Tech drop, causing investors to jump ship

  • Ethereum price is in a straight decline on the 4-hour chart. 
  • ETH price has confirmed bearish control on the RSI.
  • Invalidation of the bearish thesis is a close above $2970.

Ethereum price shows no resistance to inflation and Silicon Valley profit-taking. Ethereum price could see more sell-offs in the coming days.

Ethereum price sells off like a tech stock

Ethereum price disappoints the DeFi community as the "Decentralized Smart Contract" endures similar sell-offs to last week's decline in the Nasdaq 100. Investors noticing the mirrored decline may be in a hurry to throw in the towel as the ETH price could fall an additional 10-15% into the $2500 level. 

Ethereum price action displays a severely steep decline. The bearish engulfing candles are firing slightly larger as the trend progresses, while the bulls have less time to defend the price on the 4-hour chart. A Fibonacci projection tool says $2500 is likely if the technicals are correct. The Relative Strength Index also shows a complete capitulation from the bulls as ETH price smashed through the buyers' territory. The ETH price currently trades at $2870 and could see consolidation before another drop occurs.

TM/ETH/4.25.22

ETH/USDT 4-Hour Chart 

TM.NAS.4/25/22

Nas-100- 4-Hour Chart 

Bulls favoring decentralization of the United States' monetary system are likely to question their portfolio as the ETH price mirrors Silicon Valley tech stocks like Netflix and Uber. If market conditions persist, the US Dollar Index could see another surge as stock and crypto investors would convert their underperforming assets into fiat. 

Invalidation of the bearish scenario is a daily closing candle above $2968. If the bulls can conquer the price territory, a break back to $3250 could happen, resulting in a 13% increase from the current ETH price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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Ethereum price mirrors Big Tech drop, causing investors to jump ship