Ethereum's (ETH) price has been squeezing in a relatively tight range resembling a symmetrical triangle. From here, we have two trading scenarios: either the range becomes tighter as the price gets squeezed in between the upper triangle resistance and lower triangle support, or a breakout to the downside might be in the cards.
Playing the Breakout
The symmetrical triangle is a neutral chart pattern, but the downside breakout might carry more weight since the prevailing trend is bearish. A breakout of the upper sloping trendline can expose the 200-day moving average, which right now comes at around $1,832.
The 200-day MA is above the most recent swing low, which comes at $1,730. This might be a positive development for the bulls since the bears will first need to overcome two major support levels that come together into a single place.
Support and Resistance Levels: Key support and resistance levels to watch come at the $2,900 - $3,000 price zone, and the $2,200 - $2,280 price zone.
RSI Bearish Momentum Buildup
Another development that might get the bulls worried is the RSI bearish momentum buildup. The RSI indicator readings have been below the 50 level during the entire time ETH was trapped inside the symmetrical triangle pattern. An RSI reading below 50 usually indicates bearish momentum pressure.
Playing the Breakout
The symmetrical triangle is a neutral chart pattern, but the downside breakout might carry more weight since the prevailing trend is bearish. A breakout of the upper sloping trendline can expose the 200-day moving average, which right now comes at around $1,832.
The 200-day MA is above the most recent swing low, which comes at $1,730. This might be a positive development for the bulls since the bears will first need to overcome two major support levels that come together into a single place.
Support and Resistance Levels: Key support and resistance levels to watch come at the $2,900 - $3,000 price zone, and the $2,200 - $2,280 price zone.
RSI Bearish Momentum Buildup
Another development that might get the bulls worried is the RSI bearish momentum buildup. The RSI indicator readings have been below the 50 level during the entire time ETH was trapped inside the symmetrical triangle pattern. An RSI reading below 50 usually indicates bearish momentum pressure.