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The second-largest cryptocurrency by market capitalization, Ethereum (ETH), could risk a 16% drop from its current price if a critical price level is missed.
Alia crypto analyst, spots a sell signal presented by TD Sequential on Ethereum’s 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 drop towards the triangle’s hypotenuse at $1,700 before the uptrend resumes.
Ali identified the price of $2,150 as the crucial level to watch as a sustained three-day candle close above this level could offset the bearish outlook.
At the time of writing, ETH was down 0.75% in the last 24 hours to $2,019. This is because the cryptocurrency market had a mixed price reaction after lower-than-expected inflation statistics were released on Tuesday.
The consumer price index (CPI) rose 3.2% in the year through October, according to the latest report from the Bureau of Labor Statistics. Economists predicted the index would rise 3.3% year over year, up from 3.7% posted last month.
The US Federal Reserve chose to keep interest rates stable this month in a target range of between 5.25% and 5.50%, its second consecutive pause.
As the overall crypto market remains stable, Santiment, a new on-chain analytics company, recommends keeping an eye on the growing social volume of BTC and ETH as well as large caps as more traders seem interested in the markets again. .
Meanwhile, Ethereum 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.
