Markets
Ether Bears Hit a Wall as Price Collides with Bull Market Trendline: Technical Analysis
That of the ether (ETH) According to charting platform TradingView, the selling is stalling, with bears hitting a brick wall featuring an ascending trend line drawn from the October and January lows.
The bears’ failure to penetrate the bull market trend line since Monday suggests they may need to step back and allow prices to rebound before making another attempt to extend recent declines. According to CoinDesk data, the native token of the Ethereum blockchain fell more than 15% to $3,000 from highs of around $4,100 two months ago. The CoinDesk 20 Index (CD20), a measure of the broader cryptocurrency market, lost 17% over the same period.
Supporting the thesis of a rebound in the price of ether is the daily MACD histogram, which has turned positive, signaling renewed bullish momentum. The MACD is widely used to evaluate the strength and changes of the trend.
Intraday momentum is steadily improving, with the widely followed 50-hour simple moving average (SMA) trending north again, providing reassurance.
Immediate resistance lies at the 50-day SMA near $3,180, followed by a descending trendline representing the recent correction, currently at $3,225.
If the price were to break below the uptrend line, it would mean that the broader uptrend has ended, opening the door for a more pronounced sell-off.