Ethereum continues to trade below the medium-term downwards moving resistance line, taken from the peak of the 4th of May. Despite the recent bullish activity which we saw up until the end of last week, the crypto slid back down a bit, probably waiting for the next big market-driven news. Also, what’s interesting to point out, is that Ethereum is struggling to close below the psychological $200 mark, which raises some concerns over the possibility for ETH/USD to move lower. That said, as long as the downside line remains intact, we will stay cautiously bearish for the short run.
If, eventually, Ethereum decides to break the psychological 200.00 barrier, this could open up the path towards the September lows near the 167.50 level. Certainly, the area could prove itself to be a difficult one to overcome initially, but if it wouldn’t be able to withstand the bear-pressure, Ethereum could continue traveling further south towards the 136.00 hurdle, which was near the lowest point of July last year.
Now if the aforementioned downside resistance line gets violated and Ethereum closes above the 250.00 hurdle, this could be seen as a change in direction for the near term. More crypto-bulls could take this as a good opportunity to step in and raise Ethereum to the levels, last seen during the second half of August. The next potential resistance zone to keep an eye on could be the 300-dollar area, a break of which, could invite more buyers to the table. We could see momentum picking up even more and the crypto could easily jump to the 342.00 level, or even the 370.00 obstacle, with the latter acting as strong resistance on the 9th of August.
Both our momentum indicators, the RSI and MACD, are currently flat. The RSI is balancing around the 50 line and the MACD is just slightly below zero, but still holding above its trigger line.
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