After a failed attempt to get back above its 200 EMA on the 4-hour chart, Ethereum (ETH/USD) reversed and made its way down again. Today, the crypto has tested its short-term upside support line again, which is taken from the low of July 16th. At the same time, the price is running below its short-term tentative downside resistance line drawn from the high of August 6th. For now, we will remain cautious and wait for a violation of one of the lines before examining a further directional move.
If ETH/USD continues with this week’s downtrend and breaks the aforementioned upside line, this would also place the price below the 206.70 support zone, marked by the low of August 1st. This is when more sellers might join in and lead the crypto towards the next possible support area, at 196.35, which is the low of July 28th. There is a chance to see a small rebound from there, but if ETH/USD remains below the previously-discussed downside line, the bears could grab the steering wheel again and drive the crypto lower. If this time the 196.35 obstacle fails to withstand the bear pressure, a break of it could clear the path for a further slide towards the 187.50 zone, marked by the lowest point of July.
Our oscillators, the RSI and the MACD, are somewhat in support of the above-mentioned scenario. The RSI, although is currently pointing slightly to upside, remains below 50 and is near the 20 territory. The MACD recently fell below zero and continues to point lower, while sitting below its trigger line.
In order to start considering at least some higher areas again, a break of the aforementioned downside line is required. But ideally, we will wait for a break above the 220.80 barrier, marked by today’s high, before aiming for the next possible resistance zone. One of those zones could be the 230.27 hurdle, a break of which might clear the path to the 238.70 level, marked by the high of August 6th.
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