- Ethereum revives downward action following a failed attempt to trade above $170.
- Selling activity could dominate the trading on Thursday as Ethereum is not yet oversold.
Ethereum commenced the trading on Thursday with a bearish momentum as an extension of the selling pressure witnessed on Wednesday. The price corrected from $167 to touch a low of $163.78, Attempts to push ETH to highs above $170 hit a snag at $167.74. Ethereum price currently features a 1.45% loss on the day after adjusting to the market value of $165.23.
Meanwhile, the price is teetering beneath the 50 Simple Moving Average whose resistance is making it hard for the bulls to effect a reversal from the downward trend. Immediate support is provided by the ascending trendline. It is possible that an upward correction will ensue from the trendline based on the previous behavior of the price touching the line.
If push comes to shove, the key support between $160 and $155 will come in handy. Moreover, there is likely to be more support at the 100 SMA.
Short term analysis from a technical perspective, signals continued bearish action. The RSI, for example, is under 50 (the average). In case the slope continues towards oversold (30), ETH could indeed retest the key support area. The same negative momentum is reflected in the Elliot Wave Oscillator’s continuous bearish session.
ETH/USD 1-hour chart
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Selling activity could dominate the trading on Thursday as Ethereum is not yet oversold.