Ethereum has had an extremely volatile trading period, managing to build a solid support base above $1,550 before starting a big breakout. This cryptocurrency came under heavy sell pressure after shooting up to $1,690. At present, Ethereum appears to have capitulated as per recent trading activity with ETH down by 1.76% on the day and trading at $1,577.
Ethereum is showing bearish indications as it approaches major resistance around the $1,590 level. This price point is both a technical barrier as well as a psychological level for swing traders. With Ethereum falling 3.32% in the last 12 hours and still struggling to gain upward momentum, the challenges ahead are greater than ever.
The first breakout from an ascending triangle pattern had painted a bullish picture and proven Ethereum’s increasing strength. This caused breakouts above strong resistance levels at $1,600 and $1,620. Though, Ethereum later dropped below $1,600 support, showing the bullish strength was perhaps lacking.
Ethereum price is now trading well below the $1,625 resistance and the 100-hour Simple Moving Average. This latest advancement is a sign that the tide may be turning. Surpassing the short-term resistance at $1,590 might open the door for prices to climb toward $1,640 or even $1,650.
Looking at Ethereum’s bigger technical picture, we can see that ETH has dropped back below a multi-year bearish range. The cryptocurrency is currently resting at around the midpoint of this range. This is a major area backfilled with very low immediate – if any at all – bullish signals, contributing to a muddy environment regarding its near-term direction.
