Ethereum market overview: ETH/USD forms flag pattern; what next?
|- The formation of the bull flag pattern could see a significant reversal above $270 in the short-term.
- Ethereum must defend the flag pattern support to avoid declines that are likely to retest $240.
Ethereum held on to the support at $240 in the most recent declines. Prior to the fall, ETH/USD had corrected above $285 resistance. The crypto extended the gains above towards $290 but a reversal occurred at $288.47.
Increasing bearish pressure pushed the price below the 100 Simple Moving Average (SMA) and the 50 SMA 15-minutes. The price plunged further below the 61.8% Fib retracement level between the last swing high at $288.47 and a swing low at $240.
Various support levels gave in to selling pressure including the range support at $260 - $262 and $250. Extended declines swung below $245 but the bulls found bearing at $240 allowing for reversal. Meanwhile, the recovery above $260 has stalled short of the 50% retracement level resistance.
The formation of the bull flag pattern could see a significant reversal above $270 in the short-term. However, the buyers must defend the flag pattern support to avoid declines that are likely to retest $240 and breakdown further to $230 support. Technically, Ethereum is in a bullish zone and could trend upwards in the remaining sessions on Friday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.