If BTC declines below the $21K region, a further decline may be probable.
If the $1,540 support fails to hold, the decline in Ethereum [ETH] prices can deepen. However, if such a prolonged price decline does place, further short-selling chances may be had.
In other recent news, Ethereum co-creator and ConsenSys founder Joseph Lubin is allegedly certain that the United States won’t categorize Ether as a security.
Is a prolonged fall likely?
ETH has been oscillating between $1,540 and $1,678 since mid-January. But Bitcoin [BTC] lost control over the $22,000 region, sending the King of altcoins into a precipitous decline.
In the next days, ETH may breach the $1,540.69 border of its lower parallel channel with the intention of aiming for the bearish goal of $1,408.
If the $1,540 support fails to stop the decline, there may be short-selling chances at $1,511.36, $1,470.54, and $1,408.98.
A breach above the $1,678 channel barrier, though, would render the aforementioned bias worthless. Therefore, short sellers ought to set their stop-loss levels above this one. A similar surge would encourage bulls to go for the $1,800 region. To gain leverage, however, bulls must overcome the overhead barrier at $1,716.37.
On the 12-hour timescale chart, the RSI was negative and showed a growing divergence from ETH’s price movement, which suggested that ETH’s market structure may be deteriorating. But the OBV (On Balance Volume), which displays shifting demand, might further lock ETH in its sideways shape.
ETH had consistent growth during the previous several weeks.
According to Santiment, the consistent increase in supply outside of exchanges since mid-December 2022 indicates that ETH has been in an accumulating period.
If the accumulation trend persists, ETH can bounce back from the border of the lower channel formation, negating the previously mentioned bearish bias.
At the time of publication, the number of withdrawal transactions had drastically decreased, indicating a decline in both incoming and leaving ETH transactions.
If the selling pressure picks up as a result of the next upgrade in March releasing locked ether, which makes up around 14% of the supply, ETH may go as low as $1,400.