- Ethereum slips below $320 for the second time this week but support at $312 is still intact.
- ETH/USD requires a boost above $320 in order to make the final run-up for the triangle breakout eyeing $400.
Ethereum bulls have for most of this week’s trading found it increasingly difficult to hold the price above $320. Note that, earlier in the week, Ether ascended to a new 2020 high around $314. Unfortunately, a reversal ensued, forcing ETH/USD to seek support at $305.
Related reading: Ethereum [ETH] Unaffected by Gas Limit Increase by Miners: Research
Meanwhile, another short-lived recovery took place with Ethereum briefly trading above $320 on Wednesday. At the moment, a correction has occurred and the cryptoasset has a market value of $316.
Intriguingly, the formation of a short term (4-hour range) symmetrical triangle pattern highlights the possibility for an uptrend continuation that could draw $400 nearer. ETH/USD is already trading at the apex of the symmetrical triangle. Ether only needs a boost above $320 and towards $330 to be able to actualize this breakout.
ETH/USD 4-hour chart
Scanning the technical picture, the short term price actions for Ethereum are bound to remain bearish. For instance, the RSI is making a gradual retreat below the overbought region. A progressive downtrend could encourage more bears to join the market, thereby pushing Ethereum closer to the support at $305.
The MACD in the same range is falling towards the midline. In addition, a visible bearish divergence hints that the bearish pressure could continue to terrorize ETH. Fortunately, there is short term support at $312 likely to function as the springboard to gains above $320 in anticipation of the triangle breakout.
Ethereum Intraday Levels
Spot rate: $316.74
Percentage change: -0.42%
Relative change: -1.36
Trend: Bearish bias (short term)