Bearish Storm Hits Ethereum: Ascending Channel Break Signals Deep Correction Ahead
With several significant support levels broken, Ethereum has experienced a precipitous drop. Market sentiment is still bearish, and more corrective consolidations are probably in store before more significant drops. ETH’s inability to hold above a couple of consecutive support levels, one of which is the bottom boundary of its ascending channel, portends difficulties for the asset’s future.
Geopolitical and economic uncertainty, especially ongoing trade conflicts, are likely to be the cause of this heightened selling pressure. To sum up, due to investors’ attention shifting to safer assets like gold, the US dollar, and even Bitcoin, Ethereum has fallen below important support zones around $2K and $1.5K.
Can Ethereum Hold $1.5K? Death Cross Suggests Deeper Correction Coming
Ethereum is currently testing a crucial support level at $1.5K, which might momentarily stop more drops. However, another move down toward the $1.1K support level is still likely in the medium term because selling pressure is still strong.
The bearish market structure of Ethereum, which is defined by lower highs and lower lows, is still present and strengthens the sellers’ hold. The price has experienced a significant decline toward the $1.5K zone due to intense selling pressure along the declining trendline. Furthermore, a death cross, a powerful bearish indicator that points to additional drops, has been formed when the 100-day moving average has crossed below the 200-day MA.
In light of these elements, ETH is probably going to see further corrective consolidations in the near future, which will be followed by more severe drops. However, before the next significant move, there may be some short-term volatility and a slight price recovery.
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