Ethereum price crash halted, but the point of max pain is yet to come

Ethereum price has broken the uptrend’s backbone trend channel and corrected 10%.
ETH price sees bears squeezing price action against the current support.
Another break lower would see another 8% to 18% of devaluation for ETH price action.

Ethereum (ETH) price saw its uptrend grind to a halt on Tuesday as ETH price shed 10% of its value. During the rout, many bulls got stopped out of their long positions, and this saw an acceleration of buy-side demand declining. Now bulls are not picking up ETH coins at $4,060, which opens the door for bears to push the price even further towards $3,687 or $3,391 in the near term.

Ethereum price sees demand-side dry up as bulls wait for stabilization of ETH prices

ETH price sees further bearish pressure building against $4,060, and another leg lower looks almost inevitable. Even with the Relative Strength Index already sharply lower, it still has room to go before hitting the oversold area. Bears will, however, have their work cut out as they face the monthly pivot and the 55-day Simple Moving Average (SMA) at $3,911.

ETH/USD daily chart

A further correction to the downside would be expected to meet support and slow down at the level of both the aforementioned pivot and the 55-day SMA. Bears will have taken more profits along the way, highlighting $3,687 as a possible endpoint for the ETH correction. Bulls will want to pick up ETH price at this level, given it will represent a solid discount and try to push price-action back up towards or above $4,060.0

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.