- Ethereum (ETH) slides over 7% over the past 24 hours as bears target sub $250 support levels in the near term.
- A double top formation on the 4-hour charts offers a strong bearish signal. Could ETH dip to $230?
The cryptocurrency market has been on a wild ride in the past week as movements in Bitcoin’s (BTC) price (above and below) the $10,000 USD mark set a volatile course for the altcoins as well. The largest altcoin is on a dip in value after an impressive first six weeks through the year.
Since hitting a yearly high last week, ETH/USD has been on a sharp downward trend in the past 48 hours, plummeting 13.4% in that period from intraday highs of $287.50 on Wednesday. The second-largest cryptocurrency currently trades at $253.99 USD, balancing lightly on the key support level, whereby a breach below this level could be catastrophic for the bulls in the market.
ETH /USD bearish pattern sets targets to $230 USD
Looking at the 4-hour candle chart, a very bearish signal is forming on the charts following the price drop across the market. A death cross has formed on the moving average (MA) signaling a further price push lower with bears on a target of support/resistance level at $230 USD, if price breaches the support area at $238 USD.
Notwithstanding, the chart is forming a double top formation, which is an extremely bearish indicator if the pattern is completed. Having bounced off the neckline at $245 USD, bulls have fought off the bear interest but all indicators point to the market experiencing a bear reversal to lower support levels at $240,