Analyze graphs: Ethereum again under threat of draining

Price Ethereum and failed to remain in the bullish area at a scale of 1-hourly chart. Trading a pair of ETH/USD still remains under the threat of a new drain. That the cryptocurrency was able to hold above $ 100, it should breach the resistance zone of 120 dollars in the near future.

The General situation looks like this:

  • the asset has tried to break through the line $ 120, but testing resistance was unsuccessful;
  • scale 1-hour chart formed a local descending channel with resistance near $ 118;
  • coin is still at risk for a further decline.

Tonight Ethereum is trading at 117 dollars. For the past day, the cryptocurrency fell by 1.4 percent.

Technical analysis

Yesterday, we witnessed a steady movement of buyers above $ 115. The Ethereum even managed to gain a foothold above the moving average line is the 100 SMA. Unfortunately, testing the resistance zone of 120 USD was unsuccessful, causing the asset again rolled down.

As a result of recent price movements on the 1-hour chart of bitcoin has formed a downward channel, in which Ethereum can move a few more days. The nearest support level for an asset line is $ 114. There is also the Fibonacci 0.618 level, laid in the Wake of rising from 111 to 120 dollars.

Source: TradingView

To act as traders in this situation? Now the safest strategy is a short. The Ethereum still could rise to $ 120, but if the cryptocurrency will not overcome this level, we recommend you to open a short position.

The readings of technical indicators confirm our theory — MACD is in bearish zone, while RSI indicates downward trend. Follow the course and to be informed of all reversals will help the cryptocurrency rating.

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