Ethereum is struggling to defend $140 support amid a growing bearish momentum emanating from the rejection at $148
The key support at the 50% Fibonacci level is strong enough to hold short-term losses.
Ethereum bulls took advantage of the recent uptrend to pump the price in the direction of $150. However, the cryptocurrency reached its absolute ceiling around $148. Ethereum encountered significant pressure from the high congestion of sellers at this level, culminating in a quick reversal.
The rejection from $148 which left $150 untested has provoked a selloff that could gain momentum likely to jeopardize the crucial support at $140. According to most analysts, the reversal is fueled by the rejection at a strong resistance point. If the losses are not mitigated, Ethereum could lose more ground downwards to the extent of testing levels at $100.
Looking at the 4-hour chart, Ethereum is trading above its weekly low at $126. However, the rejection puts the uptrend at a great risk. For now, the support from the 50% Fibonacci retracement level taken between the last swing high of $148.17 to as swing low of $116.46 is strong enough to hold and prevent further losses.
The 50 SMA on the 4-hour hour chart is significantly above the 100 SMA. The moving average gap shows that the bulls still have the power to force another assault on $150. Traders must, however, continue to observe the direction of the RSI which is currently holding the position marginally above 50.
Trader Aleksandar Kumanov