- 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
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