Ethereum going down with ai bubble? Ethereum / US DollarCOINBASE:ETHUSDQuantMasterEcchThe financial market is in a panic selling state and the starting catalyst was the inflation rate increase announced by the Labor Department. Investors see the fundamental valuation of ai and chips much lower than they are priced at which in turn is bringing everything tied into the stock and financial market lower from long positions being liquidated which makes portfolios sell off other assets to cover their costs. When combined with other macroeconomic pressures such as increasing inflation and higher interest rates and the raising cost of oil from the Iran war it makes companies feel as if they cannot maintain their profit margins. Now let’s get into the analysis of ethereum. Ethereum broke out from its bear cycle low and reached its current price levels on August 26th where the macro head and shoulders pattern started at with its left shoulder. Price broke a little higher than the inflation rate news broke and it’s been in a descending channel ever since, if this channel goes below the neckline with a four hour candle close we’re going down further with a measured move pointing to the price 2000. Sellside liquidity shows this area as a hot zone on the chart. The point of control at the top of the channel is blocked by institutional sell orders and will be a hard resistance to break through but on the plus side the lower support has been defended many times with institutions unable to break through. The smart way to play this would be wait until price reaches the top of the channel and gets swept with a fair value gap as confirmation the algorithm has switched into sell mode with a stop right above the recent high which trade algorithms won’t hunt because it breaks a part of their rule set. Setting a sell order for this level without the fair value gap could potentially make an algorithm keep trying to move higher.