Ethereum price has taken an unfortunate turn of events. Although the first weeks of December showed optimistic signals, a strong bearish force entered the market late last week. Now it appears ETH has lower targets to breach.
Ethereum price takes a hit
Ethereum price has shaken the crypto market as the bears induced a downswing decline, adding an 8% decline to last week’s closing price. As the ETH price consolidates, the decentralized smart-contract token shows little remorse for early bulls in the market. On the daily time frames, bearish engulfing candlesticks are prevalent, with slight upticks in volume, suggesting ETH is on its way further south.
Ethereum price currently auctions at $1,178. On December 14, The bulls were looking strong in the market until they were denied entry to the mid $1,300 zone. After two failed attempts, ETH crashed into its current trading position. The 50-day simple moving average catalyzed the bearish rejection when turning on the moving averages.
Utilizing classical technical analysis techniques, ETH’s rejection from the moving average suggests that the Ethereum price is in a downtrend of a larger degree. Thus, a sweep of the lows event could be underway for the decentralized smart-contract token.
A piercing of the November 29 swing low at $1,151 could likely trigger a liquidity hunt into the summer lows at $878. ETH would decline by 27% as a consequence of the bearish scenario.
Ethereum price will need to reconquer at least half of last week’s range to validate aiming for higher targets. A breach above $1,328 could send the ETH price back into the recently breached 50-day simple moving average positioned near $1,400. ETH would rise by 11% if said price action occurred.