Ethereum market update: ETH/USD breaks trendline support in fresh declines

• Following the trendline break, Ethereum is likely extending the losses.

• The MACD horizontal movement suggests sideways trading in the near-term.

• Ethereum bulls fighting to keep the price above $170 support.

 The narrative, “Ethereum (ETH) has bottomed but will soon recover” is a whole lot more complicated. At press time, ETH is valued at $172.72 after a breakdown at $175. The one-hour chart shows that the bears and bulls are engaged in a head-on war, expecting more downside movement.

On Wednesday, the legendary venture capitalist Fred Wilson came out with his latest blog on cryptocurrency market named   “Some Thoughts On Crypto,”  but had to revise his earlier bullish opinion on Ethereum. Back in 2017, Wilson had suggested that the market capitalization of ETH will bypass the market capitalization for Bitcoin (BTC) and eventually be worth more per coin. The downtrend experienced by ETH in the past two years coupled with challenges facing the network has warranted a revision of his earlier opinions.

ETH/USD hourly chart

Looking at the Moving Average Convergence Divergence (MACD) horizontal at -0.582, suggests that Ethereum is going to trade sideways in the coming sessions. The Relative Strength Index (RSI) is bearish almost crushing towards the oversold territory. Moreover, it is at the same levels reached on August 29 when Ethereum bottomed around $162 giving way for a reversal. If conditions remain the same Ethereum is likely to reverse the trend towards $180 hurdle.  

On the other hand, while trading at $171, Ethereum buyers are fighting to maintain the $170 support level and this could go on throughout Thursday. The trendline has been broken- therefore tempering with the support area – making ETH/USD even more vulnerable to the current bearish moments.