The Ethereum (ETH) price plunged 7.15 percent as negative clouds blanketed the crypto market, forming an evening star pattern. This generates a double top pattern with the neckline at the $2800 support zone, as well as a reversal trend from the falling trendline.
After a fake out of the $2,800 support zone and a low of $2400, Ether prices failed to break through the trendline. As a result, with the double top breakout, the current downturn may shortly retest the low of $2,400.
The price of Ethereum (ETH) is trading below the 20 and 200 EMAs, with the lines remaining bearishly aligned. In the recent two declines, the daily-Relative Strength index (44) slope suggests a bearish divergence.
Source : TradingView
On the 4-hour ETH/USD chart, rising selling pressure pushes Ethereum prices below the extremely crucial support trendline. Furthermore, with a 2.33 percent drop, the latest 4-hour candle pierces into the support zone.
Source : TradingView
If bulls survive the downturn, a reversal could face resistance at the $3000 and $3400 mark, above the resistance trendline, contrary to bearish theory.
The MACD and signal line of the moving average convergence/divergence indicator reveal a parabolic fall below the zero line. Furthermore, the negative histograms’ rising trend indicates increased selling pressure.
Resistance levels- $3000, $3400
Support levels are- $2650 and $2400
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