26 Jun made a bearish break through the rising support, which was present on the chart from March 13. Although the price is still trading within a strong support area is a bearish signal which may indicate the completion of the current uptrend.
The long-term chart
The weekly chart shows that the rate of ETH from November 2018 is trading inside of a very long-term symmetrical triangle. It support line has not been tested enough times, however, the line resistance of this triangle were put to test four times already, and the last time was last week. Then the price formed a long Doji candle with a bearish close. When this candle occurs after an uptrend, it is traditionally considered a signal of an impending trend reversal.
However, price is still trading above the 50 day MA, which is now at $200. Up to the present time it served as a very good trend indicator.
In addition, the weekly RSI is above its 50 level, therefore, despite the expected decline, the trend is still bullish.
As shown by the daily chart, the price has made a bearish break through the rising support, built from the base, formed on 13 March.
The nearest area of support is at $220 and $187. Price has bounced from the first of them, moving in tandem with the 50-day MA. Thus, it is possible that the pair will rise to the nearest resistance at $247. Such a move will also be a test for just broken a rising line of support.
However, this bearish breakout of the support line and resistance line on the weekly chart suggests that the rate of ETH will be reduced, probably in the direction of the second region of support at $187.
On the hourly chart price since June 24, moves along the resistance line resistance. Discussing the rebound can’t occur until the price will not break above this line and the 200-hour MA.
The nearest resistance area is around $232-$236 (levels FIB 0.5-0.618). Previously it has played a role of resistance.
Accordingly, it can be probable reversal level, which then will lead to a reduction, described above.
Popular capturador @Anbessa100 announced recently that takes bearish tone for Ethereum. However, she is going to start building a short position in the currency if its price will go up to $235, which coincides with the previously identified resistance area.
Multiple shorts till $228 — 230 made me some serious profits and again after forming this bull div I wait for a reentry after the bounce pic.twitter.com/uvTfafxPGZ
— AN₿ESSA (@Anbessa100) June 26, 2020
Thus, despite the expected short-term rebound Ethereum, eventually the currency will still unfold in the direction specified by us in the analysis of areas of support.