- Ethereum price action is still stuck in a descending triangle formation.
- ETH price has received a firm rejection at each attempt to break above its falling trend line.
- Expect to see more losses as pressure mounts on several fronts in both markets and geopolitics.
Ethereum price action barely slipped 2% on Wednesday as the weekly performance of the second biggest cryptocurrency turned negative. Tail risks inflated quite rapidly on the back of turmoil in the UK government whilst its economy flirted with collapse. A campaign of massive continuous bombings by Russia in Ukraine didn’t help either. With these elements still highlighted the mood remains risk-off, triggering a cash exodus out of cryptocurrencies.
ETH price sees bulls unknowing – what to do or when to buy?
Ethereum price action already slipped over 3% on the week after bulls got a firm rejection from the red descending trend line that is keeping bearish pressure on price action. It was doing so on October 6 and when price action slipped below it on September 15. If these previous occurrences are any reference, it could mean that ETH price action might still tank another 10% in addition to the already incurred losses. Translated into figures, that could mean $1,200 will come under pressure and could be broken to the downside.
ETH price is thus still not seeing any big shifts in sentiment and remains stuck in a bearish narrative. Expect further squeezes on the $1,243.89 level, the low of February 1, 2021. Once that breaks, $1,200 will try to catch the fall, although it may fail and lead to a break lower. With this move, $1,100 comes into view, with the monthly S1 support level as additional support next to the psychological importance afforded by the fact it is a round number.
ETH/USD Daily chart
The only bullish element traders should jump up is if the red descending trend line were to break to the upside. Alert levels around $1,338 might provide entry points for bulls to enter the break, as a breakout move could quickly stretch to $1,400. More upside could be limited, however, with the 55-day Simple Moving Average and the monthly pivot lying above, just inches away from each other.