Ethereum (ETH) price has defined its weak spot this week as the $1,688 level is triggering another firm rejection for bulls. The bears are defending any uptick above it and match the buy action with plenty of selling volume to push price action into the ground. This frustrates ETH traders who want to go long, and with the washout from Thursday they could be out for quite awhile.

Meanwhile, ETH is getting headwinds from the geopolitical side as a new offensive has begun just hours after Zelenskyy visited Brussels and London with a demand for fighter jets. Expect Ethereum price to decline further as there are currently too many tail risks that could erupt. A better price tag to match the market narrative is around $1,441.

Any upside could come late this Friday evening on the back of the US Michigan Survey, with inflation expectations and Consumer Sentiment due to come out. Should the numbers project a further decline in inflation and a jump in consumer sentiment, bullish sentiment would reignite on the back of that. Ethereum price would swing back to $1,688 and test that high again over the weekend.

Notably, on the daily chart, ETH price has been undergoing a pullback move after testing its multimonth descending trendline as resistance. It now holds the 200-day exponential moving average (200-day EMA; the blue wave) near $1,525 as support.

Ether risks dropping below the 200-day EMA support wave owing to its negative market fundamentals. Such a scenario includes the next downside target at $1,200, which coincides with a multimonth ascending trendline support.

Ethereum to go bullish from DEMA200

Feb 12 2023