Ethereum eventually migrated to a proof-of-stake consensus algorithm. The event caused a wave of selling that was likely driven by those who bought ETH to receive the ETHW airdrop. Because of this, the price has dropped by 15% in the last few days.
Technical Analysis
For Grizzly
The daily chart
Ethereum is forming its third consecutive red candle on the daily time frame. Currently, the cryptocurrency is returning to a level defended by the bulls in the last two months.
Technically, the pattern revealed on the chart is bearish: a descending triangle (in light blue). Also, after a long period, the 30-day Relative Strength Index (RSI) has lost support from the ascending line (in green), which held its position above for three months.
This indicates that a further correction may begin as long as the bears drive the price below $1,420. This scenario may initially push the price up to $1,280. Given the current bearish market sentiment, it will be very difficult to recover any lost support in this situation.
If the asset recovers above $1,550 and the RSI returns above the baseline, the above scenario would be invalidated.
Key levels of support: $1420 and $1280
Key resistance levels: $1550 and $1700
Daily Moving Averages:
MA20: $1594
MA50: $1665
MA100: $1472
MA200: $2051
The ETH/BTC chart
Against Bitcoin, the cryptocurrency is trading below critical support. A trend reversal would be confirmed by a break and close below the horizontal support level at 0.073 BTC (in green). In this case, the next support is in the range of 0.064-0.066 BTC (blank).
Also, the RSI has returned below the baseline after 63 days, demonstrating the market dominance of the bears.
Key levels of support: 0.066 and 0.064 BTC
Key resistance levels: 0.073 and 0.08 BTC
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