Ethereum is currently at the mercy of sellers that could put a huge dent on its bullish momentum and pull it back to the $1,500 region, or even lower.
The king of all altcoins took advantage of the crypto market’s late October push, surging all the way to $1,655. It tried to move past this particular territory to be closer to its $1,700 target.
ETH is steadily holding the $1,600 zone, for now
Ethereum could retest the $1,500 support level due to tremendous selling pressure
The altcoin is forecasted to trade below $1,400 30 days from now
But the effects of the Federal Reserves’ 75 bps interest rate hike caught up with the cryptocurrency and made it fall all the way down to $1,500 once again.
The digital asset was quick to shake this off and made a bounce back rally as it now trades at $1,615 according to latest data from Coingecko.
In a span of two weeks, ETH managed to grow by 30% but if selling pressure continues to get in the way of the altcoin, it might kiss its entire recent gains goodbye.
Sellers Could Push Ethereum To Test A Familiar Support Level
As the crypto continues to hold the $1,600 marker, it will continue to attract sellers specially those who started to accumulate when ETH was struggling to even just hit the $1,400 zone.
Source: TradingView
If indeed more selling pressure comes right now, the digital currency could decline by 7% and will visit a familiar territory – the $1,500 support level.
This price dump will then put Ethereum in a double-top pattern which denotes an accelerated bearish cycle that will ultimately make the asset fall below the earlier mentioned support zone.
It gets worse for ETH as its Relative Strength Index (RSI) is showing weakness in its previous bullish movement, seemingly affirming the bearish forecasts.
Technical analysis points for the crypto show its current volatility level is low and therefore there is a possibility that any significant decline that will be observed from it right now could persist for a long time.
Coincodex Sees The Same For Ethereum
Coincodex, an online tracker and crypto data provider, is seeing the same bleak situation for the second largest cryptocurrency in terms of market capitalization.
According to its forecast, over the next five days, ETH will trade at $1,533 as it will abandon the $1,600 region that it hit after responding positively to the October Labor Report of the U.S.
The next 30 days will be worse for the crypto asset as it is predicted to drop below the $1,400 marker and will settle for a changing hands price of $1,357.
It would appear that Ethereum’s only chance to avoid revisiting the mentioned price levels is if sellers are unable to exert strong pressure that could undermine its current bullish movement.
ETH market cap at $198.6 billion on the weekly chart | Featured image from Kryptomoney, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal understanding of the crypto market and should not be construed as investment advice.
