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.

Ethereum ETH/USD 4-hour chart technical analysis

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why LUNA price is set to drop minimally at first but holds big risks of implosion

Why LUNA price is set to drop minimally at first but holds big risks of implosion

Terra (LUNA) price action is under pressure again after it rallied against all odds following the development of a technically bearish indicator and pattern last week.

More Terra News

Bull traders in Tezos do not seem to understand why ‘no’ means ‘no’

Bull traders in Tezos do not seem to understand why ‘no’ means ‘no’

Tezos (XTZ) price action has undergone a firm rejection over the weekend and as stated in a previous article on Tezos (XTZ) price action has undergone a firm rejection over the weekend.

More Tezos News

Three reasons why meme coins Dogecoin and Shiba Inu are hot again

Three reasons why meme coins Dogecoin and Shiba Inu are hot again

Dogecoin and Shiba Inu prices break into a rally, offering holders gains. Dogecoin offered holders 16% gains over the past week, and competitor Shiba Inu yielded 30% profits.

More Dogecoin News

XRP Price Prediction: No point in trading Ripple until one of these two things happen

XRP Price Prediction: No point in trading Ripple until one of these two things happen

XRP price remains extremely range-bound due to a lack of volatility and the presence of multiple stable barriers. A big move for Ripple will occur if it shatters the immediate support and resistance levels enveloping it. 

More Ripple News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP