- Ethereum price is still in the middle of a correction from its previous selloff, but technical signals are indicating that the downtrend is set to resume soon.
- A bearish divergence can be seen, as the pair formed lower highs while stochastic made slightly higher highs.
Ethereum price could fall from the current resistance levels back down to the previous lows at 0.00190BTC if selling pressure picks up.
Impulse wave to resume
A higher pullback to the 0.00240BTC area near the 100 SMA and the previous support might still be possible if the correction wave isn’t over. However, stochastic and RSI are already moving south, which suggests that selling pressure is building up and that the impulse wave might resume.
The 100 SMA is below the long-run 200 SMA, confirming that the path of least resistance is to the downside. In addition, ethereum price is in the middle of a longer-term downtrend, which means that there’s significant momentum for more declines.
A long red candle closing below the current consolidation at 0.00220BTC could confirm that the impulse wave is starting, potentially taking price down to the previous lows at 0.00190BTC or to new ones closer to the 0.00150BTC level.
Intraday support level – 0.00190BTC
Intraday resistance level – 0.00240BTC
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