The Ethereum price demolition is in progress at press time. Even though bulls remain optimistic, ETH technical candlestick formation points to further weakness.
In the last trading day alone, ETH is down, sinking a worrying eight percent versus the USDT.
The event of this week alone has seen prices crash below 2017 highs, and there are concerns that ETH may lose the $1k level.
This psychological mark may be the last frontier for ETH and is a closely watched reaction line in the immediate term. For bears, the momentum from early this week could be the hammer that will break determined bulls holding and rejecting bears.
Mike Novogratz Calling in Bottoms for Ethereum (ETH)
In the mid of the sell-off, Mike Novogratz believes Ethereum would hold at $1k. During the Morgan Stanley Financials Conference on Monday, the billionaire investor remained bullish, saying the recent move down could be climactic for Ethereum.
“Ethereum should hold around $1,000, which is $1,200 right now. Bitcoin is around $20,000, $21,000, and it is $23,000, so you are much closer to the bottom in crypto than you are where I think stocks are going to have another 15 to 20 percent decline.”
In his view, he is optimistic that prices are near the bottom. Still, he warned that it might not be wise for traders to deploy capital at this time, considering the FED’s monetary policy stance. Like other central banks, the U.S. FED plans to raise interest rates further to tame rising inflation, wreaking havoc on citizens, and forcing prices to record levels.
Ethereum Technical Analysis
From the daily chart, Ethereum prices are under immense selling pressure. In a bear breakout formation, sellers are in a commanding position.
The massive sell-off of June 13 was confirmed on June 14. However, a Doji bar closing below the lower BB indicates possible undervaluation. Besides, there is a sharp rejection of lower prices, resulting in a long lower wick.
While sellers may double down, liquidating on attempts higher, bulls should closely track the performance of the asset. If prices print higher today, above $1.3k, buyers stand a chance.
On the other hand, sharp losses below yesterday’s lows in confirmation of early this week’s drawdown could see ETH tumble to $1k in a bear trend continuation pattern.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
If you found this article interesting, here you can find more Ethereum News