- The ETH sellers remain in control starting out a fresh week.
- Ethereum weighs in Elon Musk’s tweet and Fed’s concerns on crypto assets.
- The no.2 coin at risk of a rising channel breakdown on the 12H chart.
Amid the absence of weekend love, the most widely trading crypto assets are extending last week’s sluggish momentum starting out a fresh week on Sunday.
Elon Musk’s, Tesla Inc.’s founder, warning against Bitcoin and Ethereum, suggesting that their transaction rate was “slow” and cost “high”, remains a weight on the no. 2 coin.
Meanwhile, the US Federal Reserve (Fed), for the very first time, flagged digital assets, in its semi-annual Monetary Policy Report to Congress released on Friday.
“The surge in the prices of a variety of crypto assets also reflects in part increased risk appetite,” the report added. This came as Bitcoin price is up some 250% from a year ago, although it is well down from its April high.
As of writing, ETH/USD is down 1% on the day, trading just shy of $2100. Ethereum is shedding nearly 10% over the past seven days.
ETH/USD: Risks remain skewed to the downside amid rejection above 50-SMA
Ethereum’s 12-hour chart shows that the price is challenging the rising trendline support at $2091, with a candlestick closing below that level likely to validate a downside breakout from a three-week-old rising channel formation.
If the channel breakdown materializes then a drop towards the $2000 psychological level cannot be ruled. A sustained breach of the last could prompt a sharp sell-off towards the $1720-$1730 region, where the June 26 low aligns.
ETH/USD: 12-hour chart
Alternatively, acceptance above the 50-SMA at $2120 is critical for the ETH bulls to aim for any meaningful recovery towards the mildly bearish 21-SMA at $2194.
Further north, the $2500 psychological barrier could be challenged once again.
All in all, the path of least resistance appears to the downside for Ethereum price.