Days after the markets were hit with more FUD surrounding Bitfinex and Tether, Ethereum (ETH) is struggling to regain a critical level that it held during all of April. A continued failure to retake this level could be very bad news for Ethereum’s price prospects.
The leading altcoin fell out of the bottom of its market structure on April 25 after the Tether news hit, seeing it blow through the critical area around $156 and straight down to the next support/resistance (S/R) zone at $146. So far, the retest has been solidly rejected around $158 after an attempt to break back to the upside.
Taking a larger view on the daily chart, above, we can see why the $156 level is so important. This area marked the top of a months-long consolidation, all the way from the yearly lows in December of 2018. This zone was beaten on several times during the first quarter of the year, before being finally broken on April 2.
Now, after having again fallen below this level, a failure to retake it would see the leading altcoin mostly likely fall and retest the ascending triangle uptrend, at about $132. ETH would absolutely need to hold this level, or risk falling out of the entire 2019 market structure. However, there should be strong support at this uptrend, should it actually be tested.
Taking a final look at the hourly price action, we can see that ETH briefly broke through the important 55-hour exponential moving average (EMA), which happens to be trending precisely within the critical zone. Price is sticking to the EMA, giving hope of a breakout back above it. The idea scenario (green arrows) would be to break up and retest the low $160s, before breaking back into the previous market structure that was lost.
All in all, the trend is in danger of shifting back to down. The bulls need to show up soon, or else the bears…