Ethereum (ETH) price drops for the second consecutive day, facing a two-week downtrend, as sellers cheer more than 1.00% intraday loss near $2,932 early Wednesday morning in New York. The altcoin’s latest weakness puts it on the way to a four-month losing streak, as well as the first yearly loss in three.
Early in the week, the Ethereum price hit a 10-day-high, but failed to cross the 21-day Exponential Moving Average (EMA), which in turn dragged ETH afterward.
Adding strength to the downside bias are bearish signals from the Directional Movement Index (DMI) momentum indicator and the market’s inaction amid the year-end holiday season.
Notably, Ethereum’s recent fall gains validation from the trading volume, suggesting active participation and liquidity, as well as a pullback in the market capitalization. That said, daily trading volume seesaws near the weekly top, surrounding $19.65 billion, confirming traders’ support for the latest ETH fall, while the market capitalization (market cap) retreats from a week’s high to $353.52 billion at the latest, according to Santiment.
It should be observed that the market’s cautious mood also contributes to the Ethereum price decline of late.
Also read: What Happened in Markets in the Past 24 Hours!
Can Ethereum price break the six-month support and add to the yearly loss? Read Details!
Ethereum Price: Daily Chart Attracts Sellers
On the daily chart, the Ethereum price fades the previous week’s rebound from a six-month-old ascending support line, while reversing from the 21-day EMA.
That said, the quote’s early-month U-turn from the 200-day EMA and a downside break of the 50% Fibonacci retracement of June-August upside, as well as the bearish DMI clues, keep the ETH bears optimistic.
That said, the DMI’s Average Directional Index (ADX, red) line tops the Downmove (D-, orange) line, and both the lines are stronger than the Upmove (D+, blue) line, highlighting a bearish directional momentum. Furthermore, the ADX and the D- lines are both above the 25.00 neutral level, while the D+ line is at 12.70, citing stronger downside momentum.
With this, the Ethereum price is likely to extend the latest weakness, highlighting an ascending support line from June, close to $2,790 at the latest.
However, the year-end inaction, due to the holiday season and a lack of major catalysts, might restrict ETH’s further downside. If not, then the 78.6% Fibonacci ratio of $2,723 and November’s low of $2,622 could test the bears before directing them to June’s bottom near $2,116.
Alternatively, the Ethereum price recovery needs validation from the 21-day EMA hurdle of $3,015 to approach the 61.8% Fibonacci retracement level, also known as the “Golden Fibonacci Ratio”, close to $3,200.
Beyond that, the 200-day EMA level of $3,396, the monthly high of $3,447, and the 50% Fibonacci retracement level of $3,535 could offer breathing halts to the ETH bulls.
Ethereum Price: Four-Hour Chart Highlights Symmetrical Triangle
ETH’s four-hour chart portrays a six-week symmetrical triangle pattern, signalling a consolidation in the altcoin price.
However, the Ethereum price reversed from the 200-bar EMA earlier in the week and gained support from the bearish DMI clues. That said, the DMI’s Downmove (D-) line is beyond the D+ and ADX, suggesting the presence of a bearish momentum.
As a result, ETH is likely to face further downside toward the said triangle’s bottom line, close to $2,820, a break of which could aim for November’s low of $2,622 before directing sellers toward the deeper levels discussed on the daily chart.
On the flip side, the 200-bar EMA guards immediate ETH upside near $3,085, a break of which could direct the recovery toward the stated triangle’s top, surrounding $3,350.
Should the quote Ethereum price remain firmer past $3,350, a 10-week-old horizontal resistance area between $3,660 and $3,680 could act as the final line of defense for the bears before directing bulls toward the daily chart’s higher levels.
