- Ethereum price action has taken on a bearish tone since March 10.
- The Relative Strength Index (RSI) did not confirm the recent upward price action.
- A double top is clear, but it may morph into a head-and-shoulders top.
Ethereum price confirmed a double top pattern before rebounding and shaping a hammer on the 12-hour chart below. The quick rebound raises the question of whether ETH is now shaping a head-and-shoulders top and is bound for further losses.
Ethereum price is visibly influenced by the bears
The RSI is around the 52 mark, indicating a balance between supply and demand. It also adds validity to the alternative bearish view that Ethereum price could now be shaping a head-and-shoulders top. A fall below the 50 levels will indicate that momentum is accelerating for a bearish impulse.
A renewal of downward pressure that takes ETH below the key support at $1,714 on a 12-hour closing basis will shape a right shoulder over the coming days before falling below the neckline around $1,695.
Immediate support is at the .382 retracement level ($1,661) followed by the .50 retracement level ($1,583). If selling accelerates Ethereum price may retest the February low at $1,293, forcing the bulls to rethink their forecasts for a rally to $10,000.
ETH/USD 12-hour chart
The line in the sand for the bearish forecast is a trade above $1,944. Both bearish alternatives would be negated and ETH price will easily test the all-time high at $2,041.42.