Ethereum (CRYPTO: ETH) had a roller coaster Wednesday, attempting to bounce off the higher low trendline and push higher in the pattern once again. The crypto market as a whole has been seeing bearish movement throughout the past few weeks, but is seeing a slight bounce today as some of the most popular cryptos are heading a little higher again.
Ethereum was up 0.51% at $2,630.89 Wednesday afternoon at publication.
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Ethereum Daily Chart Analysis
- Ethereum was pushing higher in early February but has since started to fall back toward the trendline once more. The crypto still trades in the ascending triangle pattern but will need to see a bounce to stay within the pattern. If the crypto falls below the trendline, it could be the beginning of a strong downward trend.
- The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) saw a dip lower over the past few days and now sits at 40. This cross back below the middle line shows that more sellers are now in the crypto than buyers. If the RSI continues to drop as the crypto stays near the trendline, it may hint that a break below this trendline is coming in the near future.
What’s Next For Ethereum? Ethereum is nearing a possible break below support if it cracks below the trendline and can hold below it. This could also be the beginning of a bounce and a move higher. The fact that Ethereum has fallen to the trendline twice in only two months brings more excitement to bears than it does bulls. This shows the crypto is knocking on the door of the trend break. Bears are hoping to see this break below support and want it to become an area of resistance in the future. This could bring about a bearish move if support turns into resistance. Bullish traders want the bounce to happen and for the crypto to start to form higher lows again and head back toward resistance near the $4,000 level. Bulls are also looking for the RSI to push back above the middle line to show more buying pressure in the crypto.
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