Ethereum Bearish Alert!!

If you have Ethereum in your wallet, I recommend you read this post and then make your decisions, but as you know, the cryptocurrency market is volatile and what we have to analyze are charts, so the decision to buy or sell is entirely yours.

Ethereum (ETH), the second largest cryptocurrency by market value, may be on the verge of a worrying correction. A bearish technical formation suggests that the price of the coin may face a substantial pullback, while sellers reinforce positions betting against the digital asset.

Cryptocurrency analyst Abiodun Oladokun drew attention to an emerging technical pattern on the ETH/USD daily chart: the possibility of a death cross on the MACD, a situation in which the MACD line crosses below the signal line. According to him, this technical event signals the weakening of bullish momentum and an increase in selling pressure.

“A death cross on the MACD is not just a technical signal, but a strong indication of an imminent decline,” explained Oladokun. This pattern is usually a harbinger of accelerated depreciation, which could push the price of Ethereum to lower levels.

Indicators reinforce the bearish scenario

Another worrying sign comes from the Aroon indicators, which monitor trend changes. The Aroon Down line, currently at 78.57%, suggests an increase in the frequency of new lows in the price of Ethereum and strengthening of selling power.

If Ethereum breaks the support mark at US$ 3.203, analysts predict that the asset could enter a downward spiral, with the next target being the psychological zone of US$ 3.000.

An optimistic view in the midst of the storm

Despite the gloomy forecasts, analyst Ali Martinez offers a more encouraging outlook. He suggests that if there is an unexpected increase in demand for Ethereum, the pessimistic scenario could be reversed.

“Ethereum still has potential to recover and reach US$ 3.500,” Martinez said.

Source: Investing.com