As mentioned in our previous article, the ETH prices break below the symmetrical triangle pattern. The breakdown also nullifies the long-coming support trendline of the 2023 bull run.
With altcoins consolidating over the weekend, ETH prices find support at the demand zone present above the $1600 mark. Falling trading volumes over the weekend reflect a cool-down phase in the selling spree.
During the 9.57% drop in the last six days, the lower price rejection at $1537 helps the ETH price resurface above $1600. The news of Ethereum Futures ETF seems to have helpt the bounce back.
Currently, ETH price trades at $1672 with an intraday loss of 0.80% and prolongs the consolidation in the 4-hour chart.
Coming to the technical indicators, the downfall influences a downtick in the 50-day and 200-day Exponential Moving Averages. It increases the death cross chances, which may plunge the ETH prices below $1600.
On the other end, the daily RSI line finds an uptick in the oversold zone as it refreshes with the consolidation. However, the uptick fails to crossover the oversold boundary that maintains the threat of a downtrend.
Will Ethereum Prices Continue to Fall?
In the 4-hour chart, the sideways-moving ETH prices display a pennant formation, a bearish continuation pattern. This increases the threat of a downtrend below $1600. Therefore, any bullish entry must be avoided before the $1700 breakout.
On the flip side, in case of a $1600 breakdown, the Ethereum price can challenge the psychological mark of $1500.