Ethereum (ETH) Price Trajectory Remains Firmly Pointed Downwards

Ethereum's (ETH) price trajectory remains firmly pointed downwards, extending its losing streak as broader market sentiment continues to sour.

Ethereum (ETH) price extended its losing streak as broader market sentiment, reflected in the slumping crypto fear and greed index, continues to sour.

The crypto market fear and greed index fell further this week, sliding to 22 on Monday, signaling extreme fear among investors.

As market sentiment soured further, another week of declines saw ETH touch $1,645 on Tuesday.

This price point had not been visited since October and represents a stark retreat of over 60% from its December 2023 peak.

As the market trends lower, immediate support levels for Ethereum are at $1,500 and $1,000, according to technical analysis.

However, if bulls can defend the current price point and push back above the triple-top neckline resistance, which is now at $2,138, then the current bearish trend could be invalidated.

Triple-Top Pattern Confirmed

A closer look at the weekly chart reveals the severity of Ethereum’s recent plunge. After reaching a high near $4,098 in December, the altcoin’s value has significantly eroded, wiping out substantial market capitalization.

Several critical technical indicators are flashing warning signs.

Triple-Top Pattern Confirmed: ETH formed a classic bearish “triple-top” pattern with its peak near $4,098. The crucial neckline support for this pattern resided at $2,140. Ethereum’s decisive break below this neckline signals that bearish momentum has taken control.

Golden Ratio Breached: The price has fallen below the significant 61.8% Fibonacci retracement level, calculated around $1,935. This level, often termed the ‘golden ratio,’ is a widely watched zone where pullbacks frequently find support or resistance. Slipping below it reinforces the bearish outlook.

Moving Averages Lost: ETH is now trading below both the 50-week and 100-week Exponential Moving Averages (EMAs), key long-term trend indicators. Trading below these averages typically suggests a sustained downward trend.

Momentum Indicators Point Down: Both the Relative Strength Index (RSI) and the Stochastic Oscillator, popular tools for measuring price momentum, are currently indicating downward pressure, suggesting further declines could be likely.

Trend Strength Increasing: The Average Directional Index (ADX), an indicator used to measure the strength of a trend, has climbed to 30 and is pointing upwards. An ADX reading above 20, particularly when rising, indicates that the prevailing trend – in this case, the downtrend – is strengthening.

Given this confluence of bearish technical signals, the path of least resistance for Ethereum appears to be lower in the near term.

Crucial support levels to watch on the downside are at $1,500 and potentially even $1,000, according to technical analysis.

The current bearish forecast would face invalidation only if Ethereum manages a significant rebound, pushing back above the former neckline support, now acting as key resistance, around the $2,138 level.