Ethereum: Med term breakdown will test long term breakout
- ETH sitting at key levels, needs a sharp bounce desparately.
- Break of these levels would be messy and chaotic.
Ethereum, the second largest cryptrocurrency by market capitalisation, after breaking down on the medium term chart, is now sitting exactly at certain key levels, which must hold, or else the breakout that occured last month, may not sustain and the coin may drop back to November lows.
ETH/USD is up about 4 cents of a percent at $127.75 and trading in less than 3 percent on Saturday. On the daily chart, ETH was trading in a downward sloping triangle for all through last year and finally broke out of it, after hitting double digit lows in November. But this breakout did not give enough momentum for the bulls to carry on to, resulting into a short term breakdown on the 240-minute chart, target of which is all the way towards November low and below.
Only solace for the bulls is that the price is sitting exactly above its 50 days simple moving average, break of which would be as messy and chaotic as the last crash was.
ETH/USD 240-minute chart:
ETH/USD daily chart:
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Author
Manoj B Rawal
Independent Analyst
Manoj B Rawal, financial markets professional with about 11 years of experience in writing, editing and advising on stocks, currencies and fixed income.
