The global cryptocurrency market took another hit in its seventh straight bear market. The world’s largest altcoin ethereum was also under pressure, losing ground at its $ 2,000 phycological level. With a bearish channel still active on the 12-hour chart, prices could fall and find a safe haven in a support zone between $ 1,730 and $ 1,915.
Ethereum 12 hour chart
Source: ETH / USD, TradingView
Ethereum’s chart highlighted an attempt to break out of its downward channel, but the same was denied at a resistance of $ 2,260. After the sellers regained control, ETH slid back into its pattern and saw a move into its support zone of $ 1,730 to $ 1,915. This area was not only crucial to the recovery of ETH, but would also determine its path in the coming days. Reducing losses in this region would likely break out back towards $ 2,260.
Any further upward movement could be denied by the 20-Simple Moving Average, which acted as a resistance line. On the flip side, failure to reduce losses between defensive regions could pull ETH all the way towards its February 28 low of $ 1,315.
argumentation
The momentum was clearly bearish as both highlight Great oscillator and MACD. Relative Strength Index has not risen above 50 as market weakness has continued since May 19th. However, a decline into the oversold area justifies a trend reversal that would lead to a price increase. The question that remains is whether ETH’s support zone would ease incoming selling pressures.
The visible area marked a checkpoint at $ 1,743. At this price point, trading interest for ETH was at its peak in the given timeframe and further collapse was unlikely. Should it break out of its pattern, the bulls would likely aim for a spike back towards $ 2,260, but there was no guarantee that ETH could hold that level.
Conclusion
Ethereum’s downtrend could pull the digital asset into a support zone of $ 1,730 and $ 1,915 – an area where buyers would most likely return to the market. Visible Range marked a checkpoint at USD 1,743 and a prolonged sell-off could be avoided. Should bears dominate in the coming days, ETH could fall back to its late February levels of $ 1,320.
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