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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.
Recoil levels
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.
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