Arista Networks Tumbles 5.6% as Death Cross and Bearish Momentum Signal Extended Downtrend

Arista Networks (ANET) has experienced a sharp two-day decline, falling 5.60% to close at $141.74 on January 30, 2026, with a -4.33% drop in the most recent session. This bearish momentum is evident in the candlestick patterns, where lower highs and lower lows form a descending channel. Key support levels are identified near $141.44 (January 30 low) and $136.34 (January 23 close), while resistance resides at $151.80 (January 28 high) and $153.04 (December 11 high). A potential bullish reversal signal, such as a hammer or inverted hammer, may emerge if the price stabilizes near the $141.44 level, but the current bearish bias remains strong without a decisive rebound.

The 50-day, 100-day, and 200-day moving averages (calculated from the 1-year data) suggest a deteriorating trend. The 50-day MA ($146.3) has crossed below the 200-day MA ($149.1), indicating a bearish "death cross" scenario. The 100-day MA ($148.2) further reinforces the downtrend by remaining above the 50-day line. Price has closed below all three averages for three consecutive sessions, validating the short-term bearish momentum. A retest of the 50-day MA as resistance is expected, but a sustained break below $141.44 could target the next support at $134.86 (January 23 low).

The MACD histogram has turned negative, with the MACD line ($-1.2) crossing below the signal line ($-0.8), confirming bearish momentum. The KDJ oscillator (stochastic) shows oversold conditions, with the %K line ($22) and %D line ($28) near the 20 threshold, suggesting a potential short-term bounce. However, divergence between the KDJ and price action (lower lows in price vs. higher lows in %K) hints at a weaker bearish trend. A bullish crossover in KDJ may precede a temporary rebound, but confirmation near $143.72 (January 26 close) is needed to avoid false signals.
Bollinger Bands reflect heightened volatility, with the 20-day band width expanding to $10.50 (January 28–30 range). The current price ($141.74) sits near the lower band, suggesting oversold conditions. A retest of the upper band ($151.80) would require a 7.1% rally, which is improbable without a catalyst. The narrow band contraction in late January (e.g., January 22–23) preceded the recent selloff, indicating a potential continuation of the downtrend unless the price breaks above the mid-band ($146.62).
Volume-Price Relationship analysis reveals strong bearish validation. The recent two-day decline coincided with elevated volumes (6.36M and 8.91M shares), confirming the selling pressure. However, the volume on January 30 (6.36M) is lower than the 8.91M on January 29, signaling possible exhaustion. A follow-through sell-off with declining volume would suggest a short-term bottom, while a surge in volume on a rebound could indicate a bear trap.
The RSI (14-period) stands at 28, firmly in oversold territory, but this is a warning rather than a reversal signal given the prolonged downtrend. A bounce above $143.72 (January 26 close) would push RSI into the 30–50 range, but a break below 25 would target $134.86. The RSI divergence (price making lower lows while RSI bottoms at 28) suggests a weak bearish trend, with limited upside potential in the near term.
Fibonacci retracement levels drawn from the January 22 high ($146.41) to January 30 low ($141.44) highlight critical psychological levels. The 38.2% retracement ($144.13) and 50% retracement ($143.92) align with the January 26 close ($143.72), suggesting potential support. A break below the 61.8% level ($141.44) would validate the Fibonacci target, with the next stop at $136.34. Confluence between the 61.8% retracement and Bollinger Band support increases the probability of a short-term bounce, but a failure to hold $141.44 would extend the selloff.
In conclusion, Arista Networks faces a high-probability continuation of its downtrend, with key support at $141.44 and resistance at $143.72. While confluence between Fibonacci, Bollinger Bands, and RSI suggests a potential short-term rebound, the MACD and KDJ indicators lean bearish. Divergences in the KDJ and RSI hint at a weakening downtrend, but sustained bullish momentum requires a break above $146.62 and a surge in volume. Traders should monitor the 50-day MA as dynamic resistance and prepare for further downside if the $141.44 level fails.