Ethereum Price Analysis ETH / USD: Lit Fuse

Ethereum Price Analysis ETH / USD: Lit Fuse
ETH/USD COINBASE:ETHUSD
CryptoBriefingTA

Ethereum is back under downside pressure after the second-largest cryptocurrency failed to find meaningful buying interest above the $180.00 level as the early week rally fizzled-out.

The cryptocurrency is currently trading back towards its monthly price open, leaving the ETH / USD pair at risk of declining back towards the $150.00 level.

A break below the $150.00 level would be disastrous for Ethereum and could prompt a much-deeper decline towards at least the $136.00 support level and possibly an extended drop towards the December 2018 trading low.

Short-term technical analysis highlights a flag pattern , with the $170.00 level the trigger area for a potential bearish breakdown in the ETH / USD pair. The path of least resistance is currently to the downside, given the cryptocurrency’s short-term bearish status and weak trading sentiment.

The daily time frame shows that a much larger bearish head and shoulders pattern could be forming, with the $83.00 level a possible bearish target if the ETH / USD pair declines below the $136.00 level.

Worryingly for bulls, traders are currently using any technical corrections to sell the ETH / USD pair, as highlighted by the RSI indicator on the daily time frame. Unless a break above the $188.00 level is forthcoming, the cryptocurrency is likely to test back towards the worst levels of last month.

The Choppiness Index , which highlights whether an asset is trending or range bound, shows that the ETH / USD pair is still trending lower on a medium-term basis.

Going forward, Ethereum is likely to experience heightened technical selling once below the $150.00 level, while a rally above the $188.00 level should see the cryptocurrency testing towards the $200.00 level.

According to the latest sentiment data from TheTIE. io , the short-term sentiment towards Ethereum is neutral, at 45.00 %, while the overall long-term sentiment towards the cryptocurrency continues to weaken, at 45.50%.




ETH / USD H4 Chart by TradingView

Upside Potential
The four-hour time frame highlights that the ETH / USD pair has to rally above the $185.00 level to turn bullish over the short-term. The top of the bull flag pattern on the four-hour time frame is currently located at the $193.00 level.

The ETH / USD pair’s 200-day moving average is currently the strongest form of technical resistance, at the $205.00 level and remains a key level bulls need to reclaim this month.

Downside Potential
The $170.00 level is currently the key technical support level in the short-term, with the $164.00 level the only notable technical support before the $150.00 level.

Below the $150.00 level, the $136.00 and $100.00 level offer important technical support, before the December 2018 trading low, which is located around the $82.00 level.

Summary
Ethereum is back under downside pressure after failing to sustain the early-month rally above the $180.00 level.

Technical analysis suggests that a sustained drop below the $150.00 support level could be disastrous for the ETH / USD pair over the medium-term.