Why Ethereum's Chart Is Starting To Look A Little Scary

Ethereum (CRYPTO: ETH) is trading lower Friday, heading back toward the higher low trendline once again. If the cryptocurrency falls below this trendline, it could see a strong bearish push in the coming months.

Traders should be cautious as the crypto sees a strong red day, trading more than 5% lower on the day to $2,660.46.

Ethereum Daily Chart Analysis

Ethereum is heading toward the higher low trendline and is looking for the third bounce off the trendline in the last month. This could be a bearish sign as the crypto continues to hang out near the trendline and can’t get moving upwards again.
The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto has been trading with a bearish sentiment in recent weeks. Each of these moving averages may hold as an area of resistance in the future.
The Relative Strength Index (RSI) has been moving lower the past couple of days and over the past few weeks looks to be in a period of consolidation. The RSI currently sits at 43 and shows that the market for Ethereum is seeing more selling pressure than it is buying pressure.

What’s Next For Ethereum?

Ethereum nearing the trendline could be a bearish sign as it's going to touch the trendline for the third time.

Bullish traders want to see the stock bounce off the trendline and start to head higher pushing away from the trendline. Bearish traders want to see the stock fall below the trendline this time and possibly see a strong bearish move. This could start a longer-term downward trend.

$ETHEthereum

$1672.200.40%

Overview

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.