Ethereum is currently at the mercy of sellers who could put a huge dent on its bullish momentum and drag it back to the $1,500 area or even lower.
The king of all altcoins took advantage of the crypto market’s push in late October, rising all the way to $1,655. It tried to move beyond this particular zone to be closer to its target of $1,700.
- ETH holds the $1,600 area stable for now
- Ethereum is likely to retest the $1,500 support due to strong selling pressure
- Altcoin is expected to trade below $1,400 in 30 days from now
But the impact of the Federal Reserve’s 75 bps interest rate hike caught up with the cryptocurrency and plunged it to $1,500 once again.
According to the latest data, the digital asset rocked it quickly and made a bounce back rally as it is now trading at $1,615 koingeco,
In a span of two weeks, ETH managed to rise by 30%, but if selling pressure continues to get in the way of the altcoin, it could say goodbye to all of its recent gains.
Sellers may push Ethereum to test a familiar support level
As the crypto continues to hit the $1,600 marker, it will continue to attract sellers especially those who just started struggling to hit the $1,400 zone for ETH.
If there really is more selling pressure right now, the digital currency can reject Up 7% and will visit a familiar area – the $1,500 support level.
This price dump would then put Ethereum into a double-top pattern indicating an accelerated bearish cycle that would eventually push the asset below the previously mentioned support area.
It gets worse for ETH as its relative strength index (RSI) is showing weakness in its previous bullish movement, confirming the bearish forecast.
The technical analysis points for the crypto to suggest that its current volatility level is low and hence there is a possibility that whatever significant downside is seen right now, it could be sustained for a longer period of time.
Coincodex sees similar for Ethereum
Coincodex, an online tracker and crypto data provider, is seeing a similarly dismal situation for another.D The largest cryptocurrency in terms of market capitalization.
The next 30 days will be worse for the crypto asset as it is forecast to fall below the $1,400 marker and settle for a changing hands price of $1,357.
It appears that the only chance for Ethereum to avoid revisiting the mentioned price levels is if sellers are unable to exert strong pressure which 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.