Ethereum Price Analysis: ETH/USD creates double-top formation, risks further sell-off

• ETH/USD erases the gains of the previous days amid massive market sell-off.
• A double-top formation may signal deeper losses for ETH.

Ethereum (ETH) now the second-largest digital asset with the current market value of $28.3 billion, has lost nearly 8% in recent 24 hours to trade at $256.0 at the time of writing. ETH/USD erased the gains of the beginning of the week and hit a low of $251.00 on Wednesday amid massive sell-off on the cryptocurrency market. Currently, only 52% of all Ethereum addresses are in the money, which is a bearish signal for the market.

Notably, Ethereum network activity slowed down after a spike at the end of the previous week. Thus, according to Intotheblock data, the number of active addresses declined by 11%. Also, the number of newly registered assets decreased by 21% in the recent seven days. Active address ratio also retreated from the recent peak of 0.82% to 0.69$. The ratio is calculated as a percentage of addresses with a balance that registered a transaction during a given period.

ETH/USD: Technical picture

ETH/USD recovery is capped by the initial resistance located at $267.00. This barrier is created by a combination of SMA50 and the middle line of the Bollinger Band on the 4-hour chart. Once it is cleared, the recovery may be extended towards $270.00. The ultimate resistance lies in $287.00-$290.00 area, which includes the recent high and a double top on the 4-hour chart. A sustainable move higher will open up the way towards $300.00.

On the downside, the initial support is created by  $251.00 (the recent low) and $250.00. The next important barrier comes as low as $241.00. This support is created by SMA100 4-hour and a neckline of the above-mentioned double-top formation. If it is broken, the sell-off will gather place and take the price towards $200.00.

ETH/USD 4-hour chart