The Ethereum price trades at $3,495 with a bearish bias, with sellers determined to lower the price. The largest altcoin by market capitalization is down 1.77% and 1.3% over the last 24 hours and seven days, respectively.
A bearish technical chart pattern points to more downside even as the daily trading volume jumps 12%, reinforcing the intensity of the sell-side pressure.
The 100-day and the 50-day exponential moving averages (EMAs) are posing stiff resistance for ETH. Bulls were required to push Ether back above this level to increase the possibilities of an uptrend.
Data from IntoTheBlock reveals that the ETH price faces relatively stubborn resistance in its recovery path, compared to the support it enjoys on the downside. Its In/Out of the Money Around Price (IOMAP) model revealed that the supplier congestion zone between $3,514 and $3,619 acts as a stiff resistance for Ether on the upside.
This is because it represents the price around which approximately 2.75 million ETH were previously bought by approximately 3.48 addresses. Note that the 50-day and 100-day EMAs lie within this area, reinforcing the importance of this resistance zone.
This means that the path with the least resistance for ETH price is downward.
After reaching a low of $3,380 on June 11,, ETH price pulled up as buyers bought on the dip and the wider crypto market recovered.
Despite the recovery, a bear flag can be seen on the daily chart, which hints at the continuation of the downtrend.
ETH sits on support from the flag’s lower boundary at $3,483. A daily candlestick close below this level would signal a possible downward breakout from the chart formation, projecting a drop to $2,940. Such a move would represent a 16% descent from the current price.
All the major moving averages and the relative strength index (RSI) were facing downward, suggesting that the market conditions still favored the downside. The price strength at 46 indicated that the bears still dominated the market.
On the other hand, if the bulls push the price above the flag’s middle line at $3,572 — embraced by the 50-day EMA — $3,600 would provide the first line of resistance. Additional barriers could emerge from the flag’s upper limit at $3,670 and the $3,800 major resistance level. Bulls must overcome this buying pressure from this supplier congestion area before reaching the May 27 swig high above $3,973.