The cryptocurrency market is currently experiencing choppy momentum, with total 24-hour liquidations reaching $655 million. Of this total, $354 million originated from long positions, while $301 million in shorts were liquidated, indicating intense volatility from both sides of the market.
Amidst this market turbulence, Ethereum (ETH) has once again seen its price decline, slipping back towards the $3,850 mark after achieving a 24-hour high of $4,109. The latest technical indicators on its lower timeframe charts suggest that further short-term downside movement might be anticipated.
Descending Triangle Pattern in Play?
Observing the 4-hour chart, Ethereum appears to be consolidating within a descending triangle pattern. This specific chart formation is frequently interpreted as a bearish continuation signal. The pattern is characterized by a series of lower highs that are pressing down against a horizontal support base, which suggests a waning momentum from buyers.
The most recent rejection from the descending trendline, which occurred near the $4,037 level, has further increased selling pressure. This has pushed prices down to approximately $3,849. Currently, sellers seem to be exerting control over the market, as Ethereum is struggling to regain higher price levels.
What’s Next for ETH?
Should the downside pressure persist, a breakdown below the support range of $3,822 could potentially lead to a more significant move towards $3,675. This would represent a potential decline of 4.75% from the current price levels. Such a movement could also negatively impact the broader altcoin market, given that Ethereum's price action often influences overall market sentiment.