Ethereum (ETH) – Dropped below the channel exposing itself to additional weaknessPosted on Wednesday, September 14 2022 at 9:16 pm GMT+0000
Ethereum (ETH) plummeted to a fresh one-week-low of 1,580, penetrating the ascending regression channel stretched from the August 29th bottom to meet the 3/1 Gann fan angle. While the second largest cryptocurrency awaits “The Merge”, expected to be completed on Thursday, its short-term technical picture seems a bit grim.
Specifically, the 20-and 55-exponential moving averages have just completed a negative crossover, while the oscillators are confirming growing bearish risks. The KST dived into the bearish waters further distancing itself from its signal line while the momentum indicator is following a steep downward path below the zero mark.
Hence, a decisive drop below the 3/1 Gann fan angle, will lead the way initially towards the September 7th bottom of 1,490. Another step lower from here, will bring the important August 29th low of 1,420 instantly under the radar.
In the positive scenario, where the buyers manage to mold a new foothold around the 3/1 Gann fan angle, they may get congested around the lower-line of the channel, and the nearby 1,654 – 1,659 area where the exponential moving averages are currently hovering. By overrunning this zone, they will gain further confidence to jump over the middle-line of the channel to access once again the September 10th peak at 1,790.
In brief, Ethereum dropped below the channel exposing itself to additional weakness and unless the 3/1 Gann fan angle holds firm the sell-off will get more legs. However, to resurrect the recent ascent, the price would need to propel above 1,662.