Ethereum price seems to be struggling to reverse the ongoing downtrend following the recent rejection at $1,481 (an all-time high). Support at the 50 Simple Moving Average (SMA) was also lost, adding credibility to the pessimistic outlook. As overhead pressure continues to soar, the 100 SMA on the 4-hour chart will likely be broken, giving way to losses towards $1,100.
The Moving Average Convergence Divergence in the same 4-hour range reinforces the breakdown. This indicator measures the momentum of a trend while giving selling and buying signals. The divergence made by the MACD line (blue) under the signal line suggests that selling pressure is still high.
The 4-hour chart also brings to light the formation of a double-bottom pattern. However, to confirm this bullish technical indicator, Ethereum will have to slide to $1.100, especially now that the 100 SMA support is vulnerable.
A double-bottom pattern highlights the region of immense buyer congestion. As the price draws closer to the bottom, sellers tend to get exhausted. On the other hand, buyers prepare to regain control.
ETH/USD 4-hour chart
It is worth mentioning that Ether may abandon the bearish trend altogether if the support at $1,200 holds firmly and a rebound occurs. Trading above the 50 SMA at $1,300 will call for more buy orders.
Investors rushing in to capitalize on the upswing will give ETH a massive boost, perhaps enough to clear the resistance at the new record high. In the near term, Ethereum eyes $1,500 before embarking on the ultimate journey to $2,000.
Ethereum intraday levels
Spot rate: $1,240
Relative change: -120
Percentage change: -8%
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