Ethereum had been trading in a rising channel since reversing course, creating a series of higher highs and higher lows as it worked its way north in an uptrend.
The most recent lower high is at $2,672.84, and if Ethereum drops below the level, it will negate the uptrend and throw the crypto into a possible downtrend.
Ethereum’s afternoon decline came on higher-than-average volume on lower timeframes, which indicates the bears are in control.
The move lower caused Ethereum to lose support at the eight-day exponential moving average (EMA). Bulls will want to see the crypto hold above the 21-day EMA or the eight-day EMA will cross below it, which would be bearish.
On Feb. 6, Ethereum broke up through a descending trendline that had been holding it down since the crypto reached a high near $4,800 on Dec. 1. The crypto may find support at the trendline if it continues to fall to the area.
Ethereum has resistance above at $3,057.82 and $3,240.01 and support below at $2,890 and $2,609.02.
The most recent lower high is at $2,672.84, and if Ethereum drops below the level, it will negate the uptrend and throw the crypto into a possible downtrend.
Ethereum’s afternoon decline came on higher-than-average volume on lower timeframes, which indicates the bears are in control.
The move lower caused Ethereum to lose support at the eight-day exponential moving average (EMA). Bulls will want to see the crypto hold above the 21-day EMA or the eight-day EMA will cross below it, which would be bearish.
On Feb. 6, Ethereum broke up through a descending trendline that had been holding it down since the crypto reached a high near $4,800 on Dec. 1. The crypto may find support at the trendline if it continues to fall to the area.
Ethereum has resistance above at $3,057.82 and $3,240.01 and support below at $2,890 and $2,609.02.