Ethereum trapped in Descending triangle as Analysts observe New Losses

Ethereum (ETH) has faced a significant influx of selling pressure in the past 24 hours. Which in part has been fueled by the massive sale that Bitcoin experienced today that sent the cryptocurrency in trouble to falter below $ 8,000.

Analysts are now noticing that ETH is trapped in a broad descending triangle. That could cause the cryptocurrency to fall significantly lower in the short term, and analysts now point to $ 170 as their next target.

Ethereum plummets toward $ 170 amid Crypto Market mass sale

At the time of writing, Ethereum is quoting down almost 5% at its current price of $ 175. Which marks a significant drop from its recent highs of more than $190. That set last week when ETH quickly rose to $ 200 before incurring a massive influx of pressure sales. That triggered its current downtrend.

It is imperative to keep in mind that Ethereum's downward trend in recent times has simply been the result of Bitcoin's inability to find significant stability within the $ 8,000 region, as bears were able to force BTC below their previous support levels and towards their long-established support. At $ 7,800, and its lack of upward momentum can mean problems for its short-term trend.

Although it is unclear whether altcoins can free themselves from the influence of Bitcoin. They are likely to have a lower trend unless there is some kind of event. That causes a new capital inflow into the markets.

Analysts point out that ETH is trapped in the descending triangle

A bearish technical formation in which Ethereum is currently trapped can point to the possibility that imminent additional losses are imminent for the cryptocurrency. As it is currently in a descending triangle similar to the one that Bitcoin trapped for months before its fall below $ 10,000

The Cryptomist, a popular crypto analyst on Twitter, told more than 40k followers about this formation. Explaining that he believes ETH will target the $ 170 below.

"$ ETH: Downward triangle, a configuration similar to that of BTC yesterday before the fall (see yesterday's bitcoin post). We may have a touch of resistance before also dropping $ 170". He said as he pointed to the chart then.

Unless Bitcoin finds massive support around its current price levels and increases. It is very likely that large alternatives such as Ethereum will continue with a lower trend until all markets can incur a decisive uptrend.