Potential distribution pattern as a technical factor that could cause ETH price to reel significantly lower
ETH price has continued to merge with Bitcoin and the cryptocurrency market. Currently, Ethereum is showing some signs of weakness due to its recent break below the trading range lasting more than a month in the range of $ 230 to $ 250.
ETH/USD 4 hours chart | Source: Tradingview
The weakness of ETH price is far from over
Buyers were enthusiastic about defending against a drop below $ 220 – ETH’s key short-term support level.
According to trader SalsaTekila, having a potential distribution pattern is a technical factor that could make it turn significantly lower over the next few days and weeks. Ethereum and the cryptocurrency market were unable to pick up any obvious trend following the chaos seen last week.
/2 Capitulated my $ETH long for +1.5$: everything starting to look bad, even making me doubt my $BTC bullish thesis.
Looks like potential distribution above double top, had to ditch. pic.twitter.com/ehksudjtk5
— SalsaTekila (@SalsaTekila) June 30, 2020
ETH is currently hovering in the $ 220 zone, with significant support just below the current price of $ 220. If the buyer is unable to continue to defend this level, the cryptocurrency does not have any considerable resistance. Pay attention until the range of $ 198 to $ 200, which means a further 10% reduction against the USD is imminent.
At press time, ETH price is trading at just over 1% with the current price of $ 224. This is the level it has been hovering over the past few days. Last week, ETH was able to gain some momentum when its price climbed to a high of $ 242, but it encountered significant resistance here and then brought it down to a low of $ 220.
Its denial at this level makes it perform worse than Bitcoin and plunge below the lower boundary of its trading range. It also caused it to confirm a dreaded “death cross” that has hadn’t been seen since right before the mid-March meltdown.
The recently formed death cross isn’t the only thing currently working in Ethereum bears’ favor. In particular, this recent price action neutralized much of the bullish argument for both ETH and BTC.
Now, Ethereum may be forming a distribution above a bearish “double top” – signaling that downside is imminent.
You can also check ETH Price here.
Read more:
- $500k In ETH And Other Altcoins Stolen In Hack From A DeFi App
- ETH Price Confirmed A Death Cross Formation Could Cause It To Post A Massive Decline In The Coming Days