ETH/USD traded higher yesterday, breaking above the key resistance territory of 215, which had been preventing the price from moving decently higher since May 1st. The crypto continued moving north today as well, but failed to reach our next resistance of 227, marked by the high of April 30th, and pulled back again. That said, as long as it is trading above the upside support line drawn from the low of March 20th, we would consider the near-term outlook to be somewhat positive.
The current setback may continue for a while more, but we see decent chances for the bulls to take charge again from near the 208 zone, or near the aforementioned upside support line. If so, they could successfully hit the 227 zone this time around, and if they manage to overcome it, we may see them heading towards the 240 area, marked as a resistance by the high of March 6th.
Shifting attention to our short-term oscillators, we see that the RSI, although it ticked up again, it recently exited its above-70 zone, while the MACD lies above both its zero and trigger lines, but shows signs of topping. Both indicators detect slowing upside speed and enhance our view that the current retreat may continue for a while more before the bulls decide to shoot again.
In order to abandon the bullish case and start examining a short-term reversal, we would like to see a strong dip below 190. The price would already be below the upside support line and may encourage the bears to dive towards the low of May 11th, at around 175. If that level is not able to halt the slide either, then the decline could get extended towards the 168 zone, which provided decent support between April 17th and 22nd.
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