Ethereum (ETH) price action is trading muted on the weekend. ETH records losses for the third straight day. Investors flip the crucial trading level near the $2,800 level. The recent price action suggests bulls are losing control over the trend.
- Ethereum (ETH) price trades with modest losses on Saturday.
- Expect more downside if the price slips below $2,770.
- ETH bulls losing patience as the downside pressure mounts.
As per the U.S wealth management, Morgan Stanley’s in its report stated that Ethereum (ETH) could lose its dominance if strong market competition emerges. The investment banking giant’s report titled “Cryptocurrency 201: What is Ethereum?” provides a detailed rundown of the ecosystem along with its advantages and disadvantages in relation to Bitcoin (BTC).
Ethereum face downside risk
On the daily chart, Ethereum (ETH) price has surged 55% from the lows of $2,159 as peaked at the highs of $3,284.73. However, bulls failed to sustain near the higher levels and make a healthy retracement toward the bullish slopping line.
The ascending trend line from the lows mentioned lows acts as a resistance barrier to the bulls. Furthermore, the lower break out of the ‘symmetrical triangle’ indicates the increased selling pressure in ETH/USD.
The first target is placed near the $2,400 horizontal support level. A decisive close below this level could trigger the selling towards the levels last seen in July at $1,718.41.
On the other hand, if the price manages to sustain the lower level, then it could form an ‘inverted hammer’ pattern a bullish reversal formation will push the price toward the 50-day Simple Moving Average (SMA) at $3,058
A resurgence buying pressure could push above $3,200 toward the ultimate target of $3,600.
Technical indicator:
RSI: The Daily Relative Strength Index (RSI) at 40 with a bearish crossover.
MACD: The Moving Convergence Divergence (MACD) tweak below the midline indicates the bearish bias in the pair.
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