Ethereum renews the bearish pressure under $320 in tandem with Bitcoin’s retreat under $11,000.
ETH/USD is not in grave danger yet according to the trend of the MACD.
Ethereum surprised many with its incredible rally from last week but particularly on Sunday. The second-largest digital asset cleared the resistance at a key symmetrical triangle. This coupled with increased trading activity, especially for Bitcoin, sent ETH/USD upwards past $300 and $330 levels. For the first time in 2020, ETH/USD traded above $300. The trading at $334 (new 2020 high) saw Ethereum break a 12-month high.
At the time of writing, the trend is turning bearish fast. Bitcoin has retreated under $11,000 while Ethereum has dipped below $320. Note that, Ethereum correlation with Bitcoin price has grown in recent months. For instance, in the first two weeks of July, most altcoins rallied while Ethereum exhibited zero signs of volatility just like Bitcoin price.
Looking at the technical levels, ETH is struggling to hold above the initial support at $318. The Relative Strength Index (RSI) has quickly changed the direction downwards. Due to the RSI’s overbought condition, a reversal is not out of the picture. This calls for alertness on the side of traders.
ETH/USD daily chart
On the other hand, the Moving Average Convergence Divergence (MACD) highlights that there is no cause for alarm and that buying pressure is still present. The indicator is not only in the region above the midline but vividly displays a bullish divergence above it. It is apparent that a return above $320 would push Ethereum to resume the uptrend eyeing not only $330 but also $350 and $400.
In the event of an extended reversal, losses are expected to seek refuge at $300, $280, the 50-day SMA ($243.58), the 100-day SMA ($226.65). June’s support at $216 remains the primary support.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org