Ethereum market update: ETH/USD still held hostage by trendline resistance
|- Ethereum joins Ripple and Bitcoin is recovery as they all settle above key support areas.
- Ethereum upside capped under descending trendline; path of least resistance is downward.
Ethereum reacted in tandem with the cryptocurrency market towards the close of the session on Monday. Cryptocurrencies across the board revamped their uptrend impressively. All of the top three cryptos Bitcoin, Ethereum and Ripple came out of the ‘crypt’ and settled above key support levels.
However, among the three Ethereum price lagged behind leaving $200 untested. In fact, the price action above $180 did not hold for long as retracement set in. At the time of writing, ETH/USD is exchanging hands at $177.30 following the rejection from a weekly high of $181.57.
In spite of Ethereum pacing upward from $163.80 (last week’s low), the upside is limited by a descending trendline from mid-August. The retreating technical indicators show that the buyers are gradually letting go of control. The Relative Strength Index (RSI) is pointing south after hitting highs around 86.36. Continued downward movement is likely to encourage the sellers to increase their positions resulting in further correction.
As far as support areas are concerned, the first zone with a high concentration of buyers lies with the 50 Simple Moving Average currently at $172.96. The second support area is seen at $170 while $162 will come in handy in the event declines advance.
ETH/USD 1-hour chart
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