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The second largest cryptocurrency by market capitalization, Ethereum (ETH), might risk a 16% drop from its current price if a critical price level is lost.
Ali, a crypto analyst, spots a sell signal presented by TD Sequential on the Ethereum three-day chart as the second largest cryptocurrency tests a major resistance zone between $2,000 and $2,150 within an ascending triangle pattern.
A break below this resistance level could lead to a dip toward the triangle's hypotenuse at $1,700 before the uptrend resumes.
Tomiwabold OlajideAli identified the $2,150 price point as the crucial level to watch, as a sustained three-day candlestick close above this level might offset the bearish outlook.
At the time of writing, ETH was down 0.75% in the last 24 hours to $2,019. This is as the crypto market held in a mixed price reaction after softer-than-expected inflation stats released on Tuesday.
The Consumer Price Index (CPI) increased by 3.2% in the year to October, according to the Bureau of Labor Statistics' latest release. Economists predicted the index would rise 3.3% year over year, down from 3.7% published last month.
The Federal Reserve of the United States opted to hold interest rates steady this month at a target range of 5.25% to 5.50%, its second pause in a row.
As the overall crypto market remains flat, Santiment, an on-chain analytics start-up, advises keeping an eye on the rising social volume for BTC and ETH, as well as large caps, as more traders seem to be getting interested in markets again.
Meanwhile, Ethereum's fees have risen back to their highest levels in four months as network usage grew. ETH fees rose to $5.72 per transaction on Sunday, the highest since July 4, Santiment reported.
Gamza Khanzadaev
Vladislav Sopov
Dan Burgin