Markets
Ether Bears Hit a Brick Wall as Price Collides With Bull Market Trendline: Technical Analysis
Ether (ETH) the selloff 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 this rising market trend line since Monday suggests they may have to pull back a bit and allow prices to rebound before making another attempt to extend recent declines. The Ethereum blockchain’s native token fell more than 15% to $3,000 from highs near $4,100 two months ago, according to data from CoinDesk. The CoinDesk 20 Index (CD20), a measure of the broader crypto market, lost 17% over the same period.
Supporting the case for a recovery in Ether price is the daily MACD histogram, which has turned positive, signaling further upward momentum. MACD is widely used to assess the strength and changes of trends.
Intraday momentum is steadily improving, with the widely monitored 50-hour simple moving average (SMA) heading north again providing reassurance.
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 has ended, opening the door for more pronounced selling.