Ethereum price slipped during the Asian trading session. Key levels have been defined to gauge a potential landing zone for the decentralized smart-contract giant.
Ethereum price loses steam
Ethereum price has suffered a tremendous blow as the bears forged a 10% decline on Monday, November 6. The ongoing penny-from-Eiffel-style decline was catalyzed after ETH printed a subtle M-shaped pattern on the Relative Strength Index on Saturday, November 4. As price declines, an uptick in bearish transactions is displayed, hinting that the bears mean business.
Ethereum price currently auctions at $1,475. The liquidation comes at an interesting time as the Fed is expected to deliver Consumer Price Index reports which could significantly impact all assets. At the current time, the bears have successfully breached the 8-day exponential moving average and are looking to close beneath through the 21-day simple moving on smaller time frames. The Relative Strength Index is now in extremely oversold conditions as well.
The one wick of light during Eth’s cloud of darkness is that the ETH price has fallen into the 61.8% Fibonacci level. The Fibs are based on the strongest part of ETH’s previous bullrun. Based on this evidence, the Ethereum price is in a now-or-never predicament. Any candle stick closing lower could be too far.
For traders looking to catch a knife, the safest invalidation point is the origin point of the previous rally at $1,350. If the level remains untagged, ETH still has a chance to pull a total of 180 and rally towards $1800 and potentially $2,000. Such a move would result in a 23% increase from the current Ethereum price.