Back in December when Ethereum was trading around $4,000 we warned traders that a break below the support area of $3,985 would be a bearish reversal sign. On January 5th another analysis of ours warned bulls using the Ichimoku cloud indicator when price was showing rejection signs.
Red line – resistance
On January 6th our analysis confirmed the trend change and the bearishness in Ethereum’s charts as price was testing $3,300. Price is now trading around $2,500 having retraced 78.6% of the entire rise from the June – July 2021 lows. This is the last support bulls have, as a break below it will increase chances of pushing below the $1,700 lows of the summer of 2021. There is no sign of this decline stopping yet. Buying now seems like trying to catch a falling knife. Traders need to be very cautious.
The material has been provided by InstaForex Company – www.instaforex.com