Why Ethereum Holding Above This Trendline Is Key

Ethereum ETH/USD is trading lower Friday, falling lower in a crypto market that has been moving bearishly in recent weeks. Ethereum is nearing the very long-term higher low trendline and needs to hold above it to see a multiyear upward trend continue.

Ethereum is down 15% over 24 hours at $2,723.26.

Ethereum Daily Chart Analysis

• Ethereum has fallen to the higher low trendline and is looking to see a bounce off it to continue the upward trend. The $4,000 level has been an area of resistance in the past and may continue to trade in the long term ascending triangle pattern until either the trendline is broken or the flat top resistance level is broken.
• 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) saw a dip lower Friday and has been trending lower overall. The RSI has fallen and now sits at 27, pushing into the oversold region and showing that many sellers have been moving into the crypto.

What’s Next For Ethereum?

Ethereum is falling toward the higher low trendline and this shows that bears have been pushing into the crypto. The higher low trendline is an area where the crypto has always been able to bounce back.

Ethereum needs to see a bounce back or the crypto could begin seeing a long term bearish trend. Bears are looking for a break below this trendline and for the crypto to hold below the moving averages. Bulls are looking to see the crypto bounce off of this area and continue to form higher lows in the long term trend.