Markets
Ether Bears Hit a Brick Wall as Price Collides with Bull Market Trendline: Technical Analysis
Ether (ETH) The sell-off has stalled, with bears hitting a brick wall characterized by an ascending trendline drawn from the October and January lows, according to charting platform TradingView.
The bears’ inability to penetrate the market’s uptrend line since Monday suggests they may need to back off a bit and allow a price rebound before attempting to once again extend recent declines. The native token of the Ethereum blockchain has fallen more than 15% to $3,000 from a high of nearly $4,100 two months ago, according to CoinDesk data. The CoinDesk 20 Index (CD20), a measure of the broader crypto market, lost 17% during the same period.
The daily MACD histogram has turned positive, signaling renewed bullish momentum. The MACD is widely used to assess the strength and changes of trends.
Intraday momentum is steadily improving, with the widely followed 50-hour simple moving average (SMA) moving northward again, which is reassuring.
Immediate resistance is seen at the 50-day SMA near $3,180, followed by a descending trendline representing the recent correction, currently at $3,225.
If the price falls below the uptrend line, it would mean that the broader uptrend is over, opening the door for more selling.