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The ETH technical analysis shows a high momentum bearish trend with a pattern breakout, teasing a downfall below the crucial support of $1000. The ETH price action shows a downfall below the crucial demand zone at $1450 over the weekend. With a 9% fall, the bearish breakdown of $1450 gives a head and shoulder breakout. So, will the bearish breakout rally crash the Ethereum market value under the $1000 mark this year?
Key Points:
- The Ethereum prices show a head and shoulder breakout.
- The fallout rally crosses under the $1300 mark.
- The intraday trading volume in Ethereum is $18.48 billion.
Source - TradingView
ETH Technical Analysis
The ETH price failed to sustain the $1450 support level due to the increased selling pressure over the weekend. The 9.18% drop in the Ethereum market value results in a bearish engulfing candle in the technical chart. The bearish breakdown of the demand level gives a breakout of the head and shoulder pattern mentioned in our previous article. The breakout rally crosses under the $1300 support level, reflecting an increase in selling pressure. Furthermore, the spike in the intraday trading volume supports the bearish engulfing candle, but the volume trend remains declined over the past two weeks. Hence, the ETH holders can expect a bullish reversal from the $1259 support level. However, a bullish failure at the $1259 horizontal level will prolong the correction phase and drop the Ethereum prices to $1000.
Technical Indicators
The RSI slope shows a falling trend below the halfway line approaching the oversold boundary. Moreover, the MACD and signal lines gain a bearish spread after the recent crossover, fueling the negative trend in histograms. Therefore, the technical indicators reflect a rising trend in selling pressure. As a result, the ETH technical analysis takes a bearish standpoint and offers a selling opportunity with the pattern breakout. Resistance Levels - $1450 and $1500 Support Levels - $1259 and $1000