- Ethereum price makes a spectacular pullback after sinking under the $100 level on Friday.
- The RSI clearly shows that the bulls’ exodus has stopped and Ethereum is gearing up for an upward roll towards $200.
Volatility remains extremely high in the cryptocurrency market. For instance, Ethereum price has on Friday tanked to $89.64 (intraday low) after commencing the session at $109.62. At the same time, an intraday high has been reached at $146.62 but the price has adjusted to $128 at the time of writing. In spite of the bullish reversal, the prevailing trend remains bearish which means that Ethereum gravitation is far from over.
The devastating breakdown forced ETH/USD below key descending channel support. Other expected support areas including $150, $120 and $100 were shattered into pieces as bears showcased their prowess. Critical ascending trendline support tried but failed to stop the decline. Moreover, its shattering could have added gasoline to the already lit bearish ‘fire.’
Technically, Ethereum is in the hands of the bears. Looking at the MACD, the path of the least hurdles is downwards. The indicator is jammed in the negative territory. An amplified bearish divergence speaks of the strong seller influence on the price. The situation is unlikely to change in the near term, however, support above $120 is a good point to start in the mission to pull ETH/USD above $200.
On the other hand, the RSI shows that bulls are making a noticeable effort considering that the price dived to $89.64 during the Asian hours. The oversold conditions suggest that bearish exhaustion has kicked in. Recovery above 30 followed by a continued movement towards the average (50) would stir up more bullish action.
ETH/USD daily chart
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The RSI clearly shows that the bulls’ exodus has stopped and Ethereum is gearing […]