- Ethereum tested $160 before succumbing to the bear pressure in the market.
- The bulls must defend the support at $125 to avoid further breakdown.
Ethereum bulls are still suffering under the tight grip of the bears. This week’s trading saw Ethereum fell mercilessly after testing the highs around $160. The fall could not be halted at $150 culminating in more breakdown below $130.
At the moment, the asset is still correcting lower with losses in the excess of 2% on the day. The bulls are battling to keep Ethereum above $125. However, looking at the chart, it is likely that ETH/USD will continue to deflate. For the first in 2019, the Relative Strength Index (RSI) has not only explored the oversold levels, but it is also unable to recover. The same downward trend is reflected by the Moving Average Divergence Convergence (MACD) which has descended to -6.4 for the first time this year.
Technically, Ethereum is trending lower and it will take a significant catalyst to revive the move to the upside. Besides, the 50-day Simple Moving Average (SMA) has crossed below the longer term 100-day SMA emphasizing that the bears are likely to continue gaining ground against the buyers in the short-term. The crypto has within a short time moved from being the best performer in 2019 to the worst hit.
In order to come out of the bear range, there must be a move above $130. This will allow the asset to gather strength and embark on an upward journey towards $160. Meanwhile, it is essential that the bulls find support at $125. Otherwise, we could witness a breakdown towards the $100 mark.