Ethereum is hammering at the resistance highlighted by the ascending triangle and the $380 zone.
A breakdown cannot be ruled out because of the formation of the triangle pattern.
The smart contract token seems to have hit pause at $380 following a steady but gradual recovery from $360. Gains above $380 are required so that buyers can shift the focus to $390 and $400, respectively. At the time of writing, Ethereum is trading at $379 where a bearish momentum is building.
Looking at the daily chart, the Moving Average Convergence Divergence (MACD) shows the gradual bullish momentum is fizzling out after crossing into the positive region. However, a minor divergence is still visible, suggesting buyers have the ability to regain control.
In addition to the resistance at $380, an ascending triangle pattern is also standing in the way, hindering movement. It is almost certain that Ethereum will reverse on hitting the triangle resistance again.
ETH/USD daily chart
Ascending triangles are mainly regarded as bearish indicators or continuation patterns because breakouts usually occur in the same direction as the preceding trend. Therefore, ETH/USD is far from safety because a breakout below the lower ascending trendline could see the price retesting support at $320 if not $340.
The 50-day Simple Moving Average (SMA), slightly under the price is likely to absorb some of the selling pressure in case of a reversal. Another anchor is expected at the 100 SMA and last week’s key buyer congestion zone at $360.
It is worth mentioning that the bearish outlook will be invalidated if the triangle resistance is broken. Action above $380 might boost Ethereum towards $400 and other higher levels.
Ethereum Intraday Levels
Spot rate: $378
Relative change: -1.3
Percentage change: -0.28%
Trend: Bearish bias