- ETHUSD spikes aggressively to the downside
- Rebounds quickly and moves sideways in the last sessions
- Momentum indicators are heavily tilted to the downside
ETHUSD (Ethereum) experienced a sharp retreat following the formation of a double top pattern in the four-hour chart. Although the bulls managed to recoup some losses after the price tumbled to a fresh one-month bottom of 2,108, the digital coin is still hovering beneath both its 50- and 200-period moving averages (SMAs).
Should the sideways pattern break to the upside, immediate resistance could be encountered at the December support of 2,255. Breaking above that zone, the price may challenge the December resistance of 2,343 ahead of the 2,403 barrier. A violation of the latter might pave the way for the 2023 peak of 2,447.
On the flipside, bearish actions could send the price lower towards the recent support of 2,178. Failing to halt there, Ethereum could revisit its one-month bottom of 2,108. Even lower, the 1,985 hurdle registered in late November could provide downside protection.
Overall, ETHUSD managed to erase a part of its steep slide, but the price is still holding below both its 50- and 200-period SMAs. Hence, a break above the crucial hurdles is needed for the technical picture to improve.
