ETH Plunges With A Highly Bearish Pattern, Will It Drop Under $1000?

ETH technical analysis gives a head and shoulder breakout with an 11% fall overnight in response to the hawkish comments of FEDs warning of an interest rate hike. Just 18 days before the merge, the Ethereum (ETH) prices decline by 11% in response to the increase in selling in the U.S. markets. Ether’s price reaches the $1500 mark and gives the head and shoulder breakout teasing a downfall to the $1000 support level.

Key Points:

• The ETH price action displays a bearish engulfing candle completing a head and shoulder pattern.
• The prices plunge below the 50 and 100-day SMA within a single day.
• With a market cap of $183 billion, the intraday trading volume of Ethereum has increased by 71% to reach $27.24 billion.

Source — Tradingview

ETH Technical Analysis

Ethereum (ETH) price chart displays a surge in the selling pressure evident by the spike in trading volume supporting the downfall. As a result, the price trend reverts from $1700, resulting in the completion of a head and shoulder pattern in the daily chart. The bearish breakout challenges the buyers at the psychological mark of $1500, which may shortly result in a drop to $1361. However, the daily candle is showing lower price rejection, trying to hold off a downtrend. The prices trade under the 50 and 100-day SMA, undermining the recent bullish crossover. Instead, it increases the possibility of a bearish crossover which may further fuel the downfall. If the $1500 support level breaks this weekend, the ETH prices may drop to the $1269 mark. However, the Doji candle forming near $1500 can halt the prices above the psychological mark.

Technical Indicators

The RSI slope represents Ethereum is nearly oversold as the slope plummets below the halfway line. Furthermore, the MACD indicator signals a high momentum bear trend as the negative histograms intensify. Hence, the risk of ETH prices plummeting under the psychological mark of $1500 increases. Resistance Levels: $1700 and $1900 Support Levels: $1500 and $1361

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