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Ethereum formed lower highs and found support at the $83.70 level to create a descending triangle on the 1-hour time frame. Price is bouncing off the top of the triangle and might be due for a move to support.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that support is more likely to break than to hold. If that happens, price could slide by the same height as the chart formation, which spans $83.70 to $105.

Also, the 200 SMA lines up with the triangle top to add to its strength as resistance. Price is trading above the 100 SMA for now, though, so there may be some bullish pressure in play. A break below this near-term support could lead to a dip to the triangle bottom next.

RSI is on the move down to indicate that sellers have the upper hand and could stay on until oversold conditions are seen. Stochastic is already in the oversold region and could turn up to signal a return in bullish momentum. Price would need to close above $90 to indicate a bullish triangle break.

More ICO liquidation on the heels of stricter regulatory oversight, not just in the US but in the likes of Japan and South Korea, is leading to ethereum bearishness as the ERC20 token is often used to create these coins.

It doesn’t help that the “crypto winter” keeps dragging altcoins lower and might prevent them from pulling up before the year ends or even early into next year. According to data gathered by Santiment relayed through TrustNodes, ICO projects have liquidated 416,000 ETH in the past 30 days and may keep dumping their coins in the remaining weeks of the year.