Bloomberg: Ethereum is down 2% after sustaining $47.88 million in liquidations in the past 24 hours. Liquidating long and short positions accounted for $34.71 million and $13.17 million, respectively. On the 4-hour chart, ETH is trending downward toward the $3,000 psychological level. After posting a series of lower highs and lower lows, the top altcoin’s recent move is following a descending triangle pattern.

ETH/USDT 4-hour chart As a result, if ETH declines below the $3,000 psychological level, it could take a 23% dive to the support level near $2,300. However, the $2,817 key level, which bulls defended for nearly four months between April and July, could help prevent such a sharp decline. The Relative Strength Index (RSI) is slightly below its neutral level, indicating bearish momentum is moderately dominant. The Stochastic Oscillator is in the oversold region, indicating strong bearish pressure and potential for a brief recovery. A daily candlestick close above $3,400 will invalidate the bearish thesis.