Ethereum avoided a drop beneath $370 over the past week, and its charts highlighted two critical, imminent zones of support and resistance that could decide the direction of the market in the coming weeks. Filecoin was in a phase of consolidation just above support, while Ontology continued its downtrend.
The white ascending trendline captured ETHs long-term uptrend from March. For ETH, the closest levels of importance are resistance at $400, $370 (trendline support), and the descending channel (orange) that it has been trading within for over a week.
Hence, a close outside $370 or $400 could dictate ETHs next move on the longer-term outlook.
In the short term, there was a bullish divergence spotted (purple) for ETH, that saw the price briefly ascend to $388 before dropping.
However, a descending channel generally sees a breakout to the upside. Combined with the HTF trendline support, $370-$375 could be a zone that ETH bulls would have to defend, on the occasion of a drop. A close above $400 would signal bullish strength.
The MACD was in bearish territory and crossed above, then below the signal line, giving some mixed signals. The levels highlighted above would give a clearer picture of ETHs direction in the coming hours.
Another interesting development for Ethereum has been the falling gas costs over the past month.
The price action over the past couple of days indicated indecision from the market. FIL held on to a level of support. A move to the upside was ...
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