Ethereum: Trend Reversal Signal and How to Trade in This Market

This market looks interesting for the medium and long term trading. The price diverged with MACD and RSI. It gave us a trend reversal signal based on a bullish divergence. RSI shows that the market is closer to oversold conditions. MACD is going to support a possible upward movement.

The current price could be good for buying based on the trend reversal signal, but!

The price is below a strong resistance zone formed by the main uptrend line, SMA200 and 200.00 resistance level. If we buy now, the resistance zone can stop and reverse the upward movement. That's why it will be smarter to wait for the breakout above the resistance zone and buy above 200.00 resistance level.

If BTC moves lower, we should be ready to see ETH moving to 160.00 and 140.00 support levels. These zones will be interesting for investing even the market won't provide strong buy signals.