Ethereum turns down, but stays above the 1685 zone
|ETH/USD traded slightly lower today, after hitting resistance near the 1850 zone. However, although the crypto is trading below the downside resistance line drawn from the high of May 15th, it remains above the key support area of 1685, thereby forming a descending triangle pattern. That triangle is also below a longer-term downside line, drawn from the high April 3rd, and thus, we see more chances for the price to exit the triangle to the downside rather than to the upside.
A clear and decisive break below 1685 would confirm a forthcoming lower low on both the 4-hour and daily charts and may encourage the bears to push the action towards the 1395 territory, which provided support between February 23rd and March 1st, 2021. If they are not willing to stop there, then we may see them pushing towards the 1205 territory, marked by the low of January 22nd, 2021.
Shifting attention to our short-term oscillators, we see that the RSI, already below 50, turned down, while the MACD lies below both its zero and trigger lines, pointing south as well. Both indicators detect downside speed and add to the case of the crypto exiting the triangle through its lower bound.
Now in order to start examining whether the bulls have stollen all the bears’ swords we would like to see, not only a break above the upper bound of the triangle, but also a break above the aforementioned longer-term downside line, and the 2455 territory, marked by the high of May 10th. We could then see advances towards the 2745 barrier, marked by the inside swing lows of April 27th and May 3rd, the break of which could extend the gains towards the 2975 zone, marked by the highs of April 28th and May 4th.
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.