On May 10, the Ethereum price broke from an ascending support line it had reached on March 10 from below. Since then it has validated this level as resistance.
The well-known cryptocurrency trader @PostyXBT He outlined an Ethereum chart that shows declining prices. Posty explained
Time to act short? If BTC is rejected on resistance, the likelihood of it happening increases.
The rising support line from Ethereum
On May 10, the Ethereum price broke the rising support line that it had followed since March 13. A break with this long-term support line often indicates that the ongoing trend has ended.
In addition, the price was heavily rejected at the $ 220 level before the breakout. The price found support above the 200-day moving average (MA) and confirmed the support line as resistance. This is a very common step, indicating that the price will continue its downward trend soon.
A breakdown among the 200-day MA would confirm that the correction has started.
A look at a short-term chart shows that the price is following a descending resistance line and has been doing so since the April 30 high mentioned above. At the time of writing, the price was very close to validating this line for the third time.
In addition, his resistance coincides with the Fibonacci level of 0.786 of the total decline. This makes a reversal in the form of a decline towards the 200 day MA very likely, as mentioned in the previous section.
In summary, it can be said that the Ethereum price was broken off from an ascending support line and then confirmed as resistance. The outlook is considered bearish, and the sustained rise appears to be a confirmation of this support line rather than resistance rather than a new upward trend.
Do you use telegram? Join the Telegram trading community to get exclusive buy and sell signals for cryptocurrencies, educational content, discussions and project analysis! Join the cryptocurrency group on Facebook to comment on the latest news, share the best blockchain projects and trading signals, and win the market
Disclaimer of liability. Continue readingRead less
As a leading blockchain and fintech news company, BeInCrypto always strives to comply with strict editorial guidelines and the highest journalistic standards. With this in mind, we always encourage and encourage readers to do their own research into the information contained in this article. This article is intended as news and is for informational purposes only. The topic of the article and the information provided may have an impact on the value of a digital or cryptocurrency asset, but is never intended. Likewise, the content of the article and the information contained therein do not intend and do not intend to provide sufficient information for a financial or investment decision. This article is not expressly intended as financial advice, it is not financial advice and should not be construed as financial advice. The content and information in this article have not been prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making an investment decision. The author of this article may have any amount of Bitcoin, cryptocurrencies, other digital currencies, or financial instruments at the time of writing, including but not limited to those listed in the content of this article.