Ethereum market overview: ETH/USD bears tease breakdown under the rising channel
|- Ethereum bulls scatter at $280 as bears return pushing for channel support break as price explores levels under $270.
- Technical indicators are still in the favor of the bulls hinting a reversal in the near-term.
On the day that Facebook unveiled its much-hyped stablecoin and blockchain white paper, cryptocurrencies are navigating the sea of red. The correction across the board comes after a Bitcoin instigated bull rally that saw most of the major cryptocurrencies correct above key resistance levels.
Ethereum, for instance, pushed the recovery from the recent support at $225 within an up trending channel. Key levels broken include the resistance at $230, $240, $250 as well as $270. Further correction tested $280 but failed giving way for a correction that has dropped under $270 at press time.
Ethereum exchanges hands at $265 amid a building bearish momentum. The dropping Relative Strength Index (RSI) shows the reversal from $280 further strengthened by the rising channel support at $270. As long as the RSI continues to explore the levels towards the oversold, traders can expect Ethereum to slide under $260 support.
Meanwhile, initial support at $260 coincides with the 50 Simple Moving Average (SMA) 4-h. The widening gap between the 50 SMA short-term indicator and the 100 SMA longer-term indicators shows that the bulls still have the energy to defend key support levels. Besides, the MACD, although trending lower is still in the positive region to show that buying pressure is still pressure.
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