Ethereum Price Prediction: Sell the bounce amid a potential bear flag

By March 21, 2020Ethereum
Click here to view original web page at www.fxstreet.com
  • Ethereum consolidates Friday’s sell-off to 115.80 in Saturday’s trading.
  • Last week’s downtrend stays intact amid potential bear flag on the daily chart.
  • A retest of 115.00 remains on the cards for the ETH/USD bears.

Having witnessed a volatile trading session on Friday, Ethereum (ETH/USD) is seen consolidating in $10 range so far this Saturday. The second-most traded cryptocurrency lost almost $40 a day before, having rallied as high as $153.32 before crashing to $115.80. The coin did manage to reverse a part of the previous losses, but is still not out of the woods yet, as the recovery lost legs near 137.50 region.

At the time of writing, Ethereum is down nearly 1.50% around 131.50, enjoying a market capitalization of about $ 14.44 billion.

Short-term technical outlook

As observed in the daily chart, the price traverses within a rising channel, charting a potential bearish flag pattern. The bearish continuation pattern will get confirmed only on a daily closing below the channel support at 114.70.

Last week’s downtrend will resume below the latter, opening floors for a test of the immediate support seen around 110 levels. A failure to defend the last will put the March 13 low of 89.65 at risk. The daily Relative Strength Index (RSI) trades flat below the mid-line and wells above the oversold territory, suggesting that there is further room for declines. Further, adding strength to the bearish bias, the spot trades below all the major daily Simple Moving Averages (DMA).

On the flip side, the bulls need to portray a sustained breakthrough the immediate resistance located at 146.60, the rising channel resistance, above which the 175.180 area will test the bulls’ commitment. That area is where the horizontal 100 and 200-DMAs intersect with the bearish 21-DMA.

All in all, the path of least resistance appears to the downside amid a bearish pattern formation and a cluster of strong upside barriers stacked up for the bulls to beat.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Last week’s downtrend stays intact amid potential bear flag on the daily chart.

A retest of 115.00 remains […]

Leave a Reply