Ethereum (ETH) price action is trading muted over the weekend. ETH records losses for the third day in a row. Investors are flipping the crucial trading level to the $2,800 level. The recent price action suggests that bulls are losing control of the trend.
Ethereum (ETH) price is trading with modest losses on Saturday. Expect more downside if the price drops below $2,770. ETH bulls are losing patience as the downward pressure builds.
According to US wealth management, Morgan Stanley’s stated in its report that Ethereum (ETH) could lose its dominance if strong competition arises in the market. The investment banker’s report titled “Cryptocurrency 201: What is Ethereum?” provides a detailed overview of the ecosystem, along with its pros and cons related to Bitcoin (BTC).
Etherum is at downside risk
On the daily chart, Ethereum (ETH) price is up 55% from its low of $2,159, peaking at $3,284.73. Bulls, however, failed to hold out near the higher levels and made a healthy retracement to the bullish declining line.
The rising trendline from the mentioned lows acts as a resistance barrier for the bulls. Furthermore, the lower breakout of the “symmetrical triangle” points to increased selling pressure in ETH/USD.
The first target is placed near the horizontal support level of $2,400. A decisive close below this level could lead to a sell off to the levels last seen in July at $1,718.41.
On the other hand, if the price manages to hold the lower level, it could form a ‘reverse hammer’ pattern. A bullish reversal formation will push the price towards the 50-day Simple Moving Average (SMA) at $3,058.
An uptick in buying pressure could push above USD 3,200 towards the ultimate target of USD 3,600.
RSI: The Daily Relative Strength Index (RSI) at 40 with a bearish crossover.
MACD: The Moving Convergence Divergence (MACD) tweak below the midline indicates the bearish bias in the pair.
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This post Ethereum (ETH) Price Prediction: Is ETH Heading Toward January Lows!
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