ETHUSD (Ethereum) has experienced a sharp sell-off since early June, generating a fresh 18-month low of 879. Although the cryptocurrency managed to partially rebound and recoup some of its losses, downside pressures have re-emerged.The momentum indicators are suggesting that bearish forces are in control. Specifically, the RSI is descending very close to the oversold zone, while the MACD histogram is slightly above its red signal line but remains in negative territory.
Should selling interest intensify further, the price could encounter initial support at the 2022 low of 879, which is also an 18-month low. Sliding below that region, 480 could prove a tough obstacle for the bears to overcome as it has acted both as support and resistance in late 2020. Failing to halt there, the price may then challenge the September 2020 support of 305.
To the upside, if negative momentum wanes and the price reverses upwards, immediate resistance could be met at 1,282, which is the 78.6% Fibonacci retracement of the 305-4,867 upleg. Conquering this barricade, the bulls might aim for the 61.8% Fibo of 2,048 before the 50% Fibo of 2,586 appears on the radar. Higher, the price advance could then stall at the 38.2% Fibo of 3,125.
Overall, ETHUSD seems to be exhibiting signs of further weakness after its recent rebound failed to strengthen. Therefore, a break beneath the 879 floor could signal the resumption of Ethereum’s recent downside trajectory.
