Ethereum finally migrated to a proof-of-stake consensus algorithm. The event triggered a wave of selling which was probably propelled by those who bought ETH to receive the ETHW airdrop. Because of this, the price has declined by some 15% in the past couple of days.
The Daily Chart
Ethereum is forming its third straight red candlestick on the daily timeframe. The cryptocurrency is currently back at a level defended by the bulls in the last two months.
Technically, the pattern revealed in the chart is bearish – a descending triangle (in light blue). Also, after a lengthy period, the 30-day Relative Strength Index (RSI) has lost the support of the ascending line (in green), which held its position above it for three months.
This indicates that a further correction can begin so long as the bears drive the price below $1,420. Such a scenario can initially extend the price down to $1,280. Given the market’s current bearish sentiment, it will be exceedingly challenging to reclaim any lost support in this situation.
If the asset recovers above $1,550 and the RSI returns above the baseline, the previous scenario would be invalidated.
Key Support Levels: $1420 & $1280
Key Resistance Levels: $1550 & $1700
Daily Moving Averages:
The ETH/BTC Chart
Against Bitcoin, the cryptocurrency trades below a critical support. A trend reversal would be confirmed by a break and closing below the horizontal support level at 0.073 BTC (in green). In this case, the next support is found in the range of 0.064-0.066 BTC (in white).
Additionally, the RSI has returned below the baseline after 63 days, demonstrating the market domination of the bears.
Key Support Levels: 0.066 & 0.064 BTC
Key Resistance Levels: 0.073 & 0.08 BTC
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.