Technical Analysis – ETHUSD retreats below 50-day SMA but sideways pattern holds
May 11, 2023 12:26 pm
ETHUSD (Ethereum) had been trending higher since the beginning of the year, peaking at a fresh 11-month high of 2,142 before experiencing a significant downside correction. Since then, the digital coin has been rangebound, but the short-term picture deteriorated after the price dived beneath its 50-day simple moving average (SMA).
The momentum indicators currently suggest that near-term risks are tilted to the downside. Specifically, the stochastic oscillator is descending near its 20-oversold zone, while the RSI dipped below its 50-neutral mark.
Should sellers try to push the price lower, the recent support of 1,787 could act as the first line of defense. Sliding beneath that floor, the price might decline towards 1,690 before the February support of 1,463 comes under examination. A violation of the latter could pave the way for the March bottom of 1,370.
On the flipside, bullish actions could propel the price towards the recent resistance region of 2,020. Conquering this barricade, the bulls might then target the 11-month high of 2,142. Breaking above that zone, the price will ascend towards levels not seen in the past year, where the 2,450 hurdle could cap Ethereum’s upside.
Overall, ETHUSD seems to be in a consolidation phase, but its short-term technical picture deteriorated after the 50-day SMA got violated to the downside. Therefore, a test of the tight range’s lower end could be the next action that determines whether the latest pullback will extend.
ETHUSD (Ethereum) had been trending higher since the beginning of the year, peaking at a fresh 11-month high of 2,142 before experiencing a significant downside correction. Since then, the digital coin has been rangebound, but the short-term picture deteriorated after the price dived beneath its 50-day simple moving average (SMA).
The momentum indicators currently suggest that near-term risks are tilted to the downside. Specifically, the stochastic oscillator is descending near its 20-oversold zone, while the RSI dipped below its 50-neutral mark.
Should sellers try to push the price lower, the recent support of 1,787 could act as the first line of defense. Sliding beneath that floor, the price might decline towards 1,690 before the February support of 1,463 comes under examination. A violation of the latter could pave the way for the March bottom of 1,370.
On the flipside, bullish actions could propel the price towards the recent resistance region of 2,020. Conquering this barricade, the bulls might then target the 11-month high of 2,142. Breaking above that zone, the price will ascend towards levels not seen in the past year, where the 2,450 hurdle could cap Ethereum’s upside.
Overall, ETHUSD seems to be in a consolidation phase, but its short-term technical picture deteriorated after the 50-day SMA got violated to the downside. Therefore, a test of the tight range’s lower end could be the next action that determines whether the latest pullback will extend.
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