Ethereum price action over the weekend remained bearish, and it looks as if ETH/USD is beginning to test a critical support zone at $1,111. Ethereum has been bearish over the weekend, and it looks as if sellers are now stepping up their game.
Ethereum price movement in the last 24 hours:Coinmarketcap
Yesterday’s action saw ETH/USD consolidate above $1,200 before deciding to go lower as it slowly moved below support. $1,111 will be a critical level on the 4-hour chart and should ETH/USD break this level then we could see further bearish action. The technical indicators are reflecting oversold conditions with the RSI trading at 29 while the MACD is moving into negative territory.
Should the market break below $1,111 it will open the doors for lower prices to the $1,050.0 support level. In the event of a retest of the breakdown zone and a return back above $1,140 then there could be further upside toward levels at $1,250 and $1,260.
What to expect from the current market sentiment
Ethereum is continuing to plummet after the FTX insolvency and hack of the exchange. The market is currently pointing towards the possibility of a further move towards $1,000.0 and this could be the case if there are no rapid changes in sentiment. Conversely, should ETH/USD return to above $1,140 then we may see bulls look toward the critical resistance at $1,250 once again?
The value of Ethereum (ETH) decreased sharply after the FTX exchange went bankrupt due to a hack. The person who hacked the crypto exchange still has 200,735 ETH tokens. Some analysts believe that there will be an even further decline in Ethereum and have set $840 as their final offer for Dollar Cost Averaging.
Meanwhile, the exploiter who attacked the FTX exchange is ranked position 37 among the largest ETH holders, according to data by Pickshield security.
The technical indicators are pointing to a bearish sentiment as the RSI is trading at 29 while MACD is also moving into negative territory. If the bears remain in control then ETH/USD may continue its downward movement toward $1,000.0.The moving average lines are also pointing to a bearish trend. Meanwhile, the CME futures are down and traders are shorting ETH/USD. If the market remains bearish then we could see further downward action toward $1,000.
ETH/USD daily chart:TradingView
Bears remain adamant in pushing prices lower
Ethereum price analysis on the 4-hour and hourly chart reveals the ETH/USD pair formed a bearish pattern which led to an exponential jump in the bears’ favor. As a result, ETH/USD is now testing crucial support levels at $1,111 before possibly going lower. Moreover, ETH/USD formed a head and shoulders pattern which is evident on both 4-hour and hourly charts. The MACD is also moving into negative territory but buyers may come in to support the market if it manages to stay above $1,111.
ETH/USD 4-hour chart:TradingView
Given the ETH/USD pair’s move towards support levels and bearish trend, we can expect further downward movement. However, there are some factors that may work in Ethereum’s favor such as bullish momentum as shown by the RSI trading at 29 while MACD is moving into negative territory again. If buyers can offer strong support then we could see the market retest $1,140 and possibly move back towards resistance at $1,250.
Overall, ETH has been on continued bearish pressure since the hack of FTX. Above $1,140 will see the market retest levels at $1,250 and $1,260. If ETH/USD drops below support then it will open up the possibility of further decline toward to critical level at $1,000.However, a rebound is likely as the technical indicators are pointing to oversold conditions. Thus, we could see resistance levels at $1,250 and $1,260 become a lot more vulnerable.
