ETH is seeing fresh sell-off pressure as Bitcoin crashes more than 7% to test prices below $59k.
Ether (ETH) has declined by about 5% on the day as bears take advantage of sell-off pressure in the Bitcoin (BTC) market to push the price of the second largest cryptocurrency lower.
While the bearish sentiment has taken a sharp turn over the past 24 hours, the downside momentum has been building over the past few days.
For ETH, the decline traces back to the swing low from its all-time highs of $4,362, while Bitcoin has dipped below $60,000 for the first time since making a historic run to $67,276 earlier this month.
BTC/USD is changing hands around $58,750 as of writing, while ETH/USD is valued around $4,005 across major cryptocurrency exchanges and broker platforms according to data from price aggregating site CoinGecko.
ETH price outlook
Ethereum price had an encouraging breakout in the first half of this month, racing past multiple resistance levels to reach its new all-time high on 21 October.
ETH/USD daily price chart showing a bearish move over the past 24 hours. Source: TradingView
As the chart shows, bulls failed to sustain Ether’s recent breakout, with momentum fading just above the resistance line of an ascending triangle pattern. The result is a retreat over the past two days, with the dipping RSI indicator suggesting increased selling power as bears tested $3,939
If the breakdown continues, Ethereum’s price is likely to drop to the $3,875-$3,490 range. Here we have the 20 EMA and 50 SMA lines providing a buffer zone.
On the upside, a bullish bounce could take ETH above the triangle’s resistance line. New buy-side pressure will likely accelerate a retest of the ATH area, with potential short term targets found around $5,000 and $6,500.