Ethereum is failing to find an upward way to build upside momentum as it suddenly made a bearish reversal from $1341 on Oct 18. It appears that ETH whale investors are playing a pump and dump game to maximize their profits amid the market crash.

Ethereum was expected to be the darling of the crypto community after the succession of the long-awaited Merge event, but it drastically failed to add value.

The downtrend has been fully controlled by institutional investors since the merger, and the downtrend will continue with some twists.

Ethereum Points to a Breakout!

Ethereum recently attempted to breakout at $1,341 but faced rejection and was in a rapid 24-hour decline. Ethereum has been trading in a consolidated range between $1,250 and $1,300 for a month. Above the $1,300 level, the bulls can take control and push ETH price north.

However, the bears are also not out of the league as Ethereum’s selling pressure continues, and it is likely that we will see Ethereum test a support level at $1,270. According to CoinMarketCap, Ethereum is currently trading at $1,298, trending down nearly 3% since yesterday.

Ethereum: technical analysis

Looking at the Ethereum 4-hour price chart, Ethereum had a sharp drop since facing rejection at $1,341, and even reached near its crucial support level at $1,280 with a trend line below the 55-SMA ( simple moving average).

This week has been very volatile for Ethereum as it saw a further rise near the $1,260 resistance area. Ethereum saw a break above the 50% Fib retracement during the CPI data and hit a high of $1,342 from a low of $1,190.

Based on our Ethereum technical analysis, Ethereum is facing a rejection near $1,340 due to selling pressure, and is close to the 76.4% Fib retracement of the current down move. EMA-20 is trading on a bearish line at $1,320, which makes it an immediate resistance level on the price chart.

If Ethereum sustains its price above this level, we can see its price move to the next resistance level of $1,395, where EMA-50 is currently trading. The upper limit of the Bollinger band is at $1470, which is a strong resistance level on the Ethereum price chart.

Conversely, the lower bound of the Bollinger Band is at $1,242. If this support level breaks, Ethereum can drop hard to bottom line and trade below $1,024.

The RSI-14 is also not impressive as it is trading near the 42 level, which suggests that the dominance of the bears will continue if Ethereum fails to breakout to the upside. The MACD line also indicates that the Ethereum bloodbath is not over yet.

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This post Is the price of Ethereum (ETH) preparing for a new rally or more bloodbath on the horizon?

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