All digital tokens in the top 30 flashed red after the market-wide retracement on Monday that had most investors worried whether the crypto space has already dipped inside a bear market. Ethereum has lost the critical barrier at $4,000 again after losing nearly 11% of its price on 13 December. Today, ETH dropped 5.42% to teeter at $37,784.
ETH Price Encounters Massive Resistance to the Upside
The daily chart shows Ethereum forming a plunging pennant as multiple hurdles hinder the altcoin’s upsurge. For now, ETH fights the closest resistance around the 100-day SMA at $3,909. Even if ETH bulls drive the crypto past this hindrance, it will encounter resistance near the pennant’s hurdle, currently near $4,200.
An upward breakout past the pennant will encounter substantial resistance around the 50-day Simple Moving Average at $4,345.
ETH/USD Daily Price Chart
Meanwhile, on-chain data from the IOMAP model confirms Ether’s upward journey. The model indicates Ethereum will face hurdles upwards and that the closest resistance by the 100-day Simple Moving Average near $3,900 stands inside the price range of $3,892 – $4,006 where nearly 1.31M addresses previously purchased around 3.05 Ether tokens. These investors may decide to break even, preventing any trials to push ETH past this level.
ETH IOMAP Chart
The IOMAP chart shows that Ethereum’s road with fewer obstacles remains falling one. Meanwhile, a plunge beneath the closest support of $3,700 by the pennant’s support level will add fuel to the bearish dominance, translating to further plummets towards the psychological level at $3,500.
The down-facing MAs and Relative Strength Index’s downward movement since 8 November support the pessimistic outlook on the Ethereum ecosystem. Moreover, the falling daily volume and down movement by the Moving Average Convergence Divergence under the zero line within the negative territory confirms Ethereum’s bearish thesis.
Meanwhile, the overall cryptocurrency market bleeds at the moment. All top digital assets trade in the zone. Such sentiments will support price declines by crypto coins. That way, ETH can breach many vital levels on its pessimistic journey. Corrects catalysts are essential for Ethereum to overturn the bearish outlook.
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