Ethereum (ETH) – Bearish outlook continues to worsenPosted on Wednesday, June 15 2022 at 10:46 pm GMT+0000
The second-largest cryptocurrency, Ethereum (ETH) suffered significant losses the previous week and declined to its lowest level since January 2021, marginally above the critical round number of 1,000.
Despite the recent successful merge of the Ropsten testnet with the beacon chain, Ethereum didn’t manage to find its feet, and resumed its strong bearish trend. The latter can be also confirmed by the negative intersection of the 20-, 50- and 100-day simple moving averages while the indicators are suggesting that further declines are on the cards. Both the MACD and TSI are diving beneath their trigger lines in the bearish territory, while the OBV is aggressively sloping downwards, conveying a steady selling appetite.
Having said that, a drop below the 1,000 key level may drive the price to the 2018 inside swing high of 829. Mounting selling interest may then try to squeeze the price toward the December 2020 bottom of 530 and the adjacent important round number of 500.
Otherwise, if buyers start to push back, the price could encounter tough upside constraints from the 20-day simple moving average and the twice-tested low of 1,700. Successfully overstepping this tough barricade, the buyers may then meet the psychological level of 2,000 and the 50-day simple moving average at 2,070 ahead of the May 15th top of 2,165.
Summarizing, the bearish outlook continues to worsen for Ethereum, with the focus remaining on the 1,000 level, as a dive beneath will further enforce negative pressures.