- Ethereum is trading at $165 following a short but sharp drop from the weekend high at $179.
- Technically, Ethereum is prime for a sideways trading phase around $165.
Ethereum is wallowing in increased selling activity following the rejection from the weekend high close to $180. The price is back in the $160 range and trading at $165. Ether has shed off a subtle 0.90% of its value on Monday. Besides, the picture during the European session suggests that the path of least resistance is to the south.
The trendline support failed to save Ethereum from the losses experienced on Sunday and the early session of Monday. However, it appears to that the 50 SMA on the 4-hour chart at $50 could hold throughout the trading on Monday. Other support levels to watch include the 50% Fib level of the swing high at $179.21 to a swing low of $122.43, $140 (previous support) and $130 (buyer congestion zone).
According to the RSI, the price is likely to take up a sideways trend from now onwards. The indicator is ranging at 50 while Ethereum could trade sideways around the region at $165. However, the only way to avert losses towards $140 is to pull Ether above $170 in the near term and keep $180 resistance in the eye sight.
ETH/USD 1-hour chart
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Technically, Ethereum is prime for a sideways trading phase around $165. […]