Arista Networks Plunges 5.71% as Death Cross Signals Prolonged Downtrend

Arista Networks Technical Analysis
Candlestick Theory
Arista Networks exhibits significant technical structure following its 5.71% decline to $89.66. The June 16-17 session formed a bearish engulfing pattern, reversing the prior rally and confirming resistance near $95.34-$94.70. A double-top pattern emerged around the $95 zone on June 12 and 16, reinforcing this resistance. Support now materializes at the $89.56 swing low, with critical failure below targeting the psychological $85 level. The long upper wicks on June 11 and 12 candles further signal rejection at higher prices.
Moving Average Theory
The 50-day MA has crossed below both the 100-day and 200-day MAs, triggering a death cross on higher timeframes - a bearish structural signal. Current price ($89.66) trades below all key moving averages (50/100/200-day), confirming the dominant downtrend. The clustering of MAs between $92-$95 creates dynamic resistance, while the descending 50-day MA near $94 acts as a trending resistance boundary.
MACD & KDJ Indicators
MACD shows accelerating bearish momentum, with the histogram printing deeper negative values since late May. The signal line crossover occurred mid-May and maintains a widening bearish divergence. KDJ confirms this pressure, with the %K line (20.1) and %D line (28.6) entrenched in oversold territory without bullish crossover signals. Neither oscillator currently shows divergence against price, suggesting persistent downside momentum.
Bollinger Bands
Bands expanded sharply during the June decline, reflecting rising volatility. Price breaches the lower band on high volume, typically indicating oversold conditions but lacking immediate reversal confirmation. Bandwidth expansion after the May consolidation implies continuation potential. Any recovery would need to reclaim the middle band (20-period SMA) near $92 to signal stabilization.
Volume-Price Relationship
The breakdown candle (June 17) occurred on 10.4M shares - significantly above the 10-day average volume of 8.2M - confirming bearish conviction. Downward moves consistently show higher volume than upward bounces since mid-May, validating distribution. The May 29 capitulation (17.9M shares) established a high-volume node near $86, which may act as magnetic support.
Relative Strength Index (RSI)
The 14-day RSI sits at 31.6, approaching oversold territory but without divergence from price lows. This suggests the move isn't yet exhausted despite nearing the traditional 30 oversold threshold. Prior oversold readings below 30 (May 2025) preceded only temporary rebounds before renewed weakness, warranting caution.
Fibonacci Retracement
Measuring the primary uptrend from the April low ($68) to the February high ($104):
• 61.8% retracement: $88.40 (current price testing)
• 78.6% retracement: $82.25
The 50% level ($92.50) held as resistance during the June rebound attempts. Confluence exists near $88-$89 between the 61.8% Fib and June 17 low. Failure here opens the 78.6% retracement zone.
Confluence & Divergence Synthesis
Critical confluence exists at $88.40-$89.50, combining the 61.8% Fibonacci support, June 17 low, and 2025 volume-weighted average price anchor. Bearish consensus dominates across indicators, lacking counter-trend divergences. The primary exception is KDJ and RSI approaching oversold readings, though without reversal triggers. Downside prevails below the MA cluster at $92-$95, with $85-$82.25 as the next material support zone.