The last time the gap between the 7-day MA and the 30-day MA was this high, ETH cratered from $3,200 to $1,940 in just a few weeks. A bearish breakout below the $2,150 level could set fire to the long positions that were opened in the past couple of weeks as ETH recovered.

Hence, the market could be preparing for another big dump that could crash ETH once again, unless bulls manage to defend the $1,800 level with tooth and nail.

The 4-hour chart shows that ETH has been hovering above this $2,150 level in the past couple of days. This demand zone coincides with the 200-period exponential moving average (EMA) in this lower time frame – an indicator that has significant technical relevance.

The Relative Strength Index (RSI) has dropped slightly below 40, which tends to confirm that bearish momentum is accelerating. Hence, a break below $2,150 would confirm that sellers are in control of the game.

Right now, we expect to see a signal in either this time frame or the hourly chart that confirms institutional participation in whatever the next move is. Our signals system tracks “decisional” candles that feature above-average volumes and a specific candle pattern.