• Ethereum price crosses below a critical trendline, paving the way for a correction.
• ETH price could be set at 6% today before finding support.
• Expect to see the uptrend continue with a move back to $3,687

Ethereum (ETH) price sent a distress signal to markets after bulls were unable to defend a key ascending trend line – colored green in the chart below. Instead, bulls gave way under downside pressure as markets fell for the second day in a row, investors saw no signs of relief from Ukraine, and further tail risks are likely to follow. materialize in the coming weeks. With these extreme risks weighing on investors, a rapid wave of profit taking began, drying up demand and the bulls turning to selling to cash in for the time being.

Ethereum price sees bulls losing positions with $3,100 at risk on the downside

Ethereum price hit a brake this week after encountering the 200-day simple moving average (SMA) at $3,500. With that rejection, the Bears seized the opportunity to go short again as a relief rally proved unsupported by facts and poured cold water on the party. With this break in the moral price of ETH, it broke below the green ascending trendline that has been vital support for the uptrend since early March.

ETH price is already too far to retrace and rally above $3,391.25. That would mean at least a 5% rally, and with traders sitting on their hands until nonfarm payrolls come out of the US, there’s only a small window of opportunity. Add to that the fact that the Relative Strength Index (RSI) is only now back below the “overbought” zone, and it seems highly unlikely that the bulls will come in size now, but they could instead wait for $3,100, with the historically significant monthly pivot or $3,018.55, before you see the bulls buy the dip.

ETH/USD daily chart

With talks still ongoing, a possible further reassurance or breakthrough with a Russian-held ceasefire over the weekend, for example, could trigger a bullish relief rally and see price action rally back towards $3,391.52. This would be the perfect position to go into the weekend and set the stage for a test and break above the 200-day SMA and target $3,687.17 next week. This would mean around 13% of the profits are on the table in the coming week.