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Ethereum Daily Chart – Source: Tradingview.com

Ethereum recorded an extremely bearish day of price action yesterday along with the rest of the market.

After outperforming since mid-December, Ethereum underperformed other cryptocurrencies during yesterdays drop resulting in it dropping to the third largest cryptocurrency in terms of total market cap.

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It had recently reclaimed the second position from Ripple’s XRP but yesterdays drop brings Ethereum back down to the third position.

The drop resulted in Ethereum falling below a number of key levels.

$128 to $140 was a key area of consolidation during drops in mid-November, and many analysts were anticipating strong support at $140.

However, the price dropped below both levels and currently trades around $126.

Ethereum Hourly Chart – Source: Tradingview.com

However, the lower time frame hourly chart is starting to show more bullish patterns forming.

A bullish divergence is forming between the price and RSI.

A bullish divergence is a trend reversal pattern and takes place when the price forms lower lows despite the RSI forming higher lows.

This shows price continuing to decrease even though selling pressure is falling.

Key Takeaways:

  • Ethereum drops back to the third position in cryptocurrency market cap rankings after underperforming during yesterdays price action.
  • Yesterday’s price action resulted in Ethereum dropping below two key levels – $140 and $128.
  • Bullish divergence – a trend reversal pattern – is currently forming on the hourly.

Latest Ethereum News:

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