- ETH/USD changes hands at $304 with the bull’s focus being on defending $300 support.
- Its technical picture has a bearish bias in the short-term with the (RSI) having retreated from the overbought.
The crypto market is essentially in the red following the weekend trading sessions. Most of the major cryptocurrencies are in posting intraday losses including Ethereum which is correcting lower 0.7% on Monday. Bitcoin (BTC) has managed to stay above $11,000, however, a correction towards $12,000 is still hampered.
BTC/USD 1-h chart
The ETH/USD trading pair chart shows price breaking above the confluence created by the trendline resistance and the 100 Simple Moving Average (SMA) at $291.75. The breakout that followed propelled Ethereum in a bullish engulfing candlestick not only resuming the support above $300 but also stepping above $310.
While a correction from the weekend highs has already occurred, Ethereum is still holding onto the shallow gains. At press time, ETH/USD changes hands at $304 with the bull’s focus being on defending $300 support.
Its technical picture has a bearish bias in the short-term with the Relative Strength Index (RSI) having retreated from the overbought. The RSI at 59 is still slopping downwards to show that the bearish momentum is gaining traction.
Moreover, the Moving Average Convergence Divergence (MACD) is currently moving sideways inside the positive territory. This means that Ethereum has the capacity to stay above $300 support but correction upwards will remain hampered.
Ethereum buyers need to push ETH/USD above the immediate resistance at $310 in order to pave the way for a correction towards $320 hurdle and $363 recent highs. As far support is concerned, if $300 is cleared, Ethereum fills find additional support at $290, $280 and $270 respectively.
Ethereum Key Technical Indicators
Support Areas: $300, $290, $280 and $270.
Critical hurdles: $310, $320 and $363.
RSI: Staying above average means Ethereum could gain traction upwards.
MACD: Ranging trend means sideways trading will continue in the near-term.
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