Ethereum Price Key Highlights
- Ethereum price is starting a new short-term downtrend on its 1-hour time frame, with a descending channel connecting the latest highs and lows.
- Price is currently testing the channel resistance at 0.00260 and may be ready for a move back to the bottom at 0.00220.
Ethereum price appears ready for a quick drop, as technical indicators on the 1-hour time frame suggest that bears are in for a quick play.
Bearish Signals Seen
Stochastic hasn’t quite reached the overbought zone yet but the oscillator is already turning lower, indicating a return in bearish pressure. RSI is also heading south, which suggests that ethereum price might follow suit.
However, the 100 SMA is still above the 200 SMA, which suggests that the longer-term uptrend visible on the 4-hour time frame might carry on. For now, the short-term moving average is holding as a dynamic resistance level for ethereum price and might be able to keep gains in check.
The latest test of the channel resistance also looks like a bullish flag formation, with an upside break past the 0.00270 area likely to signal that buyers are gaining the upper hand. If so, ethereum price could head up to the next potential resistance at the 0.00280 mark or until the 0.00300 major psychological resistance level.
If you’re bearish on this pair, a short position at market with a target at the channel support or 0.00220 could be an option. Waiting for a bit more momentum on a break of the tight consolidation around 0.00260 could provide more confirmation.
If you’re bullish, however, you could go for an upside breakout from the flag pattern at 0.00270 or make a conservative entry at the test of the channel support at 0.00220.
Intraday support level – 0.00220
Intraday resistance level – 0.00270
Technical Indicators Settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
Charts from Kraken, courtesy of TradingView