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.
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:
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
Binance Free $100 (Exclusive): Use this link to sign up and get $100 free and 10% off fees on Binance Futures in your first month (terms).
PrimeXBT Special Offer – Use this link to sign up and enter code POTATO50 to receive up to $7,000 in your deposits.
Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.
TradingView Cryptocurrency Charts.