We start with a long chart to get the lay of the land, on the ETH/USD weekly. We can see ETH is starting to test the previous resistance zone starting at $165. It took Ethereum a considerable amount of time to break this area – it was first defined in the 2018 bear market – so we can expect it to serve as strong support.
But we can also see that this area has been retested a few times already. What’s more, the trend seems to remain down, with the 21 EMA still sliding lower. The histogram on this chart, where last week it seemed to be arching up modestly, has so far in the week completely reversed course down. Closing this volatile week in this profile would be bearish.
Moving to a 12-hour ETH/USD chart, we can see Ethereum moving in step with the Bitcoin dump, and largely mimicking the former’s chart. It is retesting the exact same local support zone for the third time in three months, starting at $160.