Could Ethereum Be In Trouble? A Technical Analysis As The Trendline Cracks

Ethereum ETH/USD is trading down Tuesday, after spending some of the afternoon climbing in a cryptocurrency market that is bouncing back from a strong bearish market over the past couple of weeks. Ethereum is now trading below the higher low trendline and trades with uncertainty in the market.

Ethereum was down 1.35% at $2,418.04 Tuesday afternoon at publication.

See Related: Why Ethereum Holding Above This Trendline Is Key

Ethereum Daily Chart Analysis

• Ethereum has fallen below the higher low trendline in what traders call an ascending triangle pattern. This gives uncertainty in whether the market is turning around or is seeing a period of consolidation before a more bearish movement.
• The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto is seeing recent bearish sentiment. Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) continues to trend lower and sits at 26 on the indicator. This is well into the oversold range where the crypto is seeing selling pressure outweighing buying pressure.

What’s Next For Ethereum?

As Ethereum continues to see more sellers, it is more than likely that the price will continue to dip lower. Buyers will need to come back into the crypto before it starts to turn back around. Volume has increased in the past few days as the crypto has fallen, also indicating selling could continue. Bullish traders are looking to see the RSI cross back above the middle line before Ethereum may really start pushing higher once again. Bulls could use the opportunity of a bear market to begin accumulating when the RSI becomes more bullish. Bearish traders are in control and want to see the price hold below the higher low trendline as the RSI continues to fall lower, possibly hinting at more selling and a price dip to come.

Image by Peter Patel from Pixabay