A look at the weekly logarithmic chart for Ethereum shows that price broke the longstanding support at $170 and is now heading lower, trying to create a bottom.
Price has fallen below the 0.88 fib level, and the next visible support area is formed by the 2017 trading range, between $12 and $19.
Furthermore, the most recent drop was accompanied by extremely large levels of volume (red vertical bars).
Staying with the weekly chart, we can see that two bearish crosses occurred between the 7-21 and 7-50 period moving averages (yellow arrows) respectively.
Furthermore, the MACD rejected a bullish cross and is now headed down. Lastly, while the RSI is <30, levels not seen before, there is no bullish divergence developing.
A look at the daily chart paints a more positive outlook.
Even though the price is moving below all the moving averages, there is solid bullish divergence developing in the RSI, and the MACD rejected a bearish cross (yellow arrow) and is now heading upward, trying to break 0 for the first time since April.
A look at the 6hr chart gives us an even more positive outlook.
There is an even stronger amount of bullish divergence developing at both the RSI and the Chaikin Oscillator.
Furthermore, the price seems to be trying to make a double bottom at $80. The strongest area of resistance lies between $165-170.
- Price broke the long-standing support line of $170.
- The next major support area is around $15.
- Long and short-term indicators are not in agreement, giving a bearish and bullish scenario respectively.
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