Ethereum’s descending triangle formation affirms another downward spiral

Ethereum suffered heavy losses in the recent market downtrend and registered a minor surge of 1.37% over the last 24-hours, the coin was trading at a bearish zone against the US Dollar below the $155-level. At press time, the cryptocurrency was valued at $151.49 and registered a market cap of $16.46 billion.

Ethereum 1-Hour Chart:

Source: ETH/USD on TradingView

Ethereum’s hourly chart depicted a descending triangle pattern taking shape, right after the sharp fall on 22nd November, with the price oscillating between one horizontal and one upward sloping trendline. This indicated a potential bearish breakout in the near-term. For the same time frame, the chart depicted a decline in volume. This further supported the validity of the descending triangle pattern.

Moving averages also predicted the coin trading in the bear zone. 100 moving average was above 50 moving average with no hints of a trend reversal insight.

A bullish reversal was unlikely as ETH was resisted by the horizontal trendline at $154-level following the recent drop while the coin was supported at point $144, a crucial level that had previously acted as strong resistance point for the coin from 24th February to 2nd April.

If the trend persists, and a subsequent breakout to the negative side materializes, the coin could find itself closing at its support level $144 after nearing its immediate resistance point at $154.

Bearish projection:

Source: ETH/USD on TradingView

MACD was below signal line and suggested bearish outcome for the coin. Additionally, RSI indicated a neutral market sentiment among the ETH investors as it just touched the 50 median line.

The above charts signaled strong bearish projections and a potential downward breakout in the near-term would lead the coin to fall below previous support points.

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