Ethereum price fell 5% to nearly $2,200 on Thursday, as the asset remains in a downtrend for the fourth straight day. Now, a confirmed breakdown below a key ascending trendline positions it for more downside in the coming sessions.
Summary
- Ethereum price drops 5% to near $2,200, extending losses for a fourth straight day after rejection at $2,400.
- Ethereum has broken below a key ascending trendline support, signaling a shift in momentum toward bears and increased downside risk.
- Bearish indicators have strengthened, with Aroon Down at 92.86% and a MACD crossover, pointing to potential decline toward $2,000.
According to data from crypto.news, Ethereum (ETH) price has been tanking for the past four days, which began when bulls faced resistance at $2,400 on April 27. Trading at $2,256 at press time, the token is still down 2.6% in the weekly period.
Ethereum price fell due to investors turning cautious over delayed peace talks between the U.S. and Iran and a persistent hawkish stance taken by the Federal Reserve towards rate cuts so far this year.
The token now stands at risk of more downside ahead after it confirmed a bearish breakdown from an ascending trendline that had been acting as a dynamic support for it since late March.
Each time Ethereum tested the support, it rebounded back above, making it a key foundation for the recent rally. As such, a decisive breakdown below the trendline has opened Ethereum to intensified selling pressure, with the overall momentum shifting to bears.
Technical indicators point out that bears have been gaining dominance over the market, likely attempting to pressure prices even lower. Notably, the Aroon Down indicator has surged to 92.86% while the Aroon Up has plummeted to 7.14%.
At the same time, the MACD lines have formed a bearish crossover, which further solidifies the current downward trajectory.
The last time Ethereum formed such a bearish signal in mid January, it came crashing down over 45% in less than a month.
Hence, the path of least resistance for Ethereum points toward the $2,000 mark, a breakdown from which could open the door for a much sharper decline.
On the contrary, if the price manages to break out from the $2,400 resistance zone that has been limiting its recovery, the market could see a sudden reversal of this negative trend.