- Ethereum saw a 2.7% price fall over the past 24 hours of trading as it drops back toward $259.
- The cryptocurrency broke out of the short term symmetrical triangle pattern that we had outlined yesterday.
Ethereum dropped by a further 2.7% over the past 24 hours of trading as the cryptocurrency drops beneath the $260 level. This latest price decline even caused ETH to drop beneath the short term symmetrical triangle we highlighted in our last article.
Nevertheless, the cryptocurrency still remains above strong support and would need to drop beneath $250 before we start to show some concern.
Ethereum Price Analysis
ETH/USD – Daily CHART – SHORT TERM
Market Overview
Since our last analysis, we can see that ETH dropped beneath the short term symmetrical triangle pattern as it confirms that it would like to turn into a neutral trading condition as Ethereum enters the consolidation phase.
This is good for ETH as it allows the buyers to take a short break without the need to give up control to the bears for an extended period of time.
Short term prediction: NEUTRAL
The recent break beneath the symmetrical triangle pattern puts ETH into a neutral trading condition as it enters consolidation. The cryptocurrency would now need to rise and break above $285 before resuming the previous bullish trend and would still need to break beneath $225 before turning bearish.
If the sellers push lower, we can expect very strong support at $256, provided by the short term .236 Fibonacci Retracement level. This is then followed up with support at $250.
If the bears push further below $250, support is then located at $240, $235, $225, and $221.
On the other hand, if the buyers regroup and rebound from $256, the first level of resistance lies at $271. This is then followed with resistance at $278, $285, $290, and $298 (long term bearish 0.5 Fibonacci REtracement level).
The RSI is at the 50 level to indicate indecision within the market. If the RSI dips beneath 50, we can expect ETH to head lower beneath $256 and possibly toward $240.
Key Levels:
Support: $256, $250, $247, $240, $235, $230.
Resistance: $278, $285, $290, $298, $300, $310, $314, $334.
Image from TradingView
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