Ether Suffers a 4% Dip in 24 hours, Technical Indicators are in Sell Zone

At the time of publication, Ether (ETH) seems to be exchange hands at $1,170 and it is a low price compared to the past 24 hours. This is because, in this particular window, the trading price of ETH has suffered a loss.

The trading price of the second-largest crypto has shed 4% of its trading value, moving down to its current trading price. The overall trading volume for ETH in the past 24 hours has been $5 billion.

The overall valuation of ETH has also suffered a similar 4% loss, moving down to $143 billion.

A Strong Selling Trend

According to the ETH analysts, they are currently witnessing three black crows in the 4-hour timeframe of the asset. The particular pattern means that ETH is exhibiting a strong selling trend.

This could mean that the dip ETH has experienced in the past 24 hours is just the tip of the iceberg. The price of ETH may continue plunging in the upcoming trading sessions.

This is not a good sign for the ETH bulls and investors who were hoping for a bullish trend as the FTX contagion lost its momentum a bit.

It seems like the investors will need to wait longer before the situation turns bullish.

Upward Channel has been Broken

The data suggests that the past 24-hour plunge has pulled ETH out of the upward channel. This means that ETH is now moving in a negative direction, and the direction may not change for a while.

In the upward channel, the trading price of ETH was finding strong support at the $1,210 level. Due to the recent developments and the price plunge, the same level has shifted sides.

Now the same strong support level has shifted to a strong resistance level, becoming a major challenge for the bulls. The bulls will need to exert even more power in order to push ETH higher.

They will need to fight the bears even at the $1,210 level, which is going to be quite the challenge for the ‘already struggling’ buyers.

ETH is Below the Average Line

Due to the latest plunge, the value of Ethereum has also fallen below the moving averages. The first moving average it fell below is the 50-day moving average.

This also supports a strong selling trend, which could trigger another major selling spree, bringing ETH’s price even lower.

There is a great threat to the $1,150 mark, which is the immediate support for ETH. If the bulls do not fight back and the bears keep gaining more ground, ETH may actually fall below $1,150.

The relative strength index is also leaning toward the bearish zone, which is supporting the bearish sentiments.

By Brandon Craig
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