Ethereum prices fell 5% to nearly $2,200 on Thursday, continuing the asset’s fourth straight day of declines. We currently see a breakdown below the key uptrend line, which could lead to further declines in the coming sessions.
Ethereum (ETH) price has been plummeting for the past four days, starting on April 27th when bulls faced resistance at $2,400, according to data from crypto.news. Trading at $2,256 at the time of writing, the token is still down 2.6% on the week.
Ethereum prices fell as investors became wary of delays in U.S.-Iran peace talks and the Federal Reserve’s persistently hawkish stance on interest rate cuts so far this year.
The token is now at risk of further decline after confirming a bearish breakdown from the uptrend line that has served as dynamic support for the token since late March.
Ethereum has rallied upwards every time it tests support, serving as an important foundation for the recent rally. Therefore, a decisive break below the trend line has increased selling pressure on Ethereum and the overall momentum has shifted to bearish.
Technical indicators point out that the bears have gained an upper hand in the market and are likely looking to put further downward pressure on prices. In particular, the Aroon Down indicator has jumped to 92.86% and the Aroon Up indicator has plummeted to 7.14%.
At the same time, the MACD line is forming a bearish crossover, further consolidating the current downward trajectory.
The last time Ethereum formed such a bearish signal was in mid-January, when it crashed more than 45% in less than a month.
Therefore, the path of least resistance for Ethereum is towards the $2,000 mark, below which it could open the door to an even sharper decline.
Conversely, if the price manages to break out of the $2,400 resistance zone that has been limiting its recovery, the market could witness a sudden reversal of this negative trend.
