Ethereum and the rest of the altcoins are facing strong bearish momentum since November 26th. The largest altcoin had declined by more than 12% in the last few days, dropping under $4000. On the 26th, it reached a low of $3912 but the worst might be yet to come.
At press time, Ethereum’s short-term chart is looking extremely weak and the price is dropping. Ether’s market cap had dropped down to $475 billion, and its trading volume was $13.5 billion over the past 24-hours.
Ethereum 1-hour time frame
The largest altcoin has faced bearish validation at multiple steps over the past week. Before the drop on 26th, Ethereum was oscillating within the trendlines of an ascending parallel channel. Technically, it carries bearish implications and it unfolded on the 26th. Similarly, after the bearish drop, the asset failed to recover significantly above the immediate resistance of $4200.
Bearish pressure continued to mount on the asset and now, there is another pattern taking shape. At the moment, Ethereum is moving between a symmetrical triangle. Now, a symmetrical triangle pattern carries both bullish and bearish implications. Therefore, the chance of a positive recovery remains. However, since the prior trend is bearish, the possibility of another decline is looming large.
50-Moving Average and 20-Exponential Moving Average is also acting as ceiling resistance(orange and blue line above the price).
Market indicators are collectively bearish. RSI suggested that selling pressure remains dominant and there is a lack of buyers. MACD is momentarily bullish but it hovered under the 0.00 value, suggesting an overall bearish trend.
Moreover, Stochastic RSI is turning strongly bearish as the signal line hovered over the RSI line.
The immediate target for Ethereum is its previous low of $3912 but over the next 48-hours, it may go down to $3800. A 5% decline is expected, which will witness Ether register a new monthly low for the month of November.
Credit: Source link