Ethereum (ETH) is in a downtrend, following the broader cryptocurrency market decline.

With a daily loss of 1.3%, the bulls (buyers) are struggling to hold the $2.6K support. Will they be able to hold this level or will ETH continue to decline?

Ethereum at risk of breakup

The 4-hour chart shows that ETH has been trading inside a rising wedge since September 6, with a brief breakout below the pattern between September 15 and 19. Now, the asset is at risk of another bearish breakout. This is because the asset is in the process of validating or failing the pattern’s support line.

Ethereum (ETH) chart on TradingView

Although this line has acted as support before, it is possible that it will break. This is because the trading volume recorded in the last few hours is relatively large, which shows that sellers are gaining strength.

Read more: Ethereum ETFs – Understand what they are and how they work

Price forecast

Technical indicators on the 2-hour chart also support this scenario. At this time, the 9-period exponential moving average (EMA) (blue) crossed below the 21-period EMA (orange). This crossover shows that ETH is trading at increasingly lower prices in the short term. Now, both averages act as resistance.

Additionally, the Relative Strength Index (RSI). Being below the neutral line of 50 but above the line of 30, the indicator shows that the current momentum is bearish and that the asset still has room to fall further before reaching the oversold level.

Ethereum (ETH) chart on TradingView

With this, the most likely scenario is a drop towards the nearest bottoms, at $2,550 and $2,450. On the other hand, rising back above the EMAs mentioned above would indicate that the channel's support line remains validated, with the price potentially continuing to rise within the pattern.

The article Ethereum (ETH) Forecast: How Can the Price Behave Today? was first seen on BeInCrypto Brazil.