Cryptocurrencies, which just like stock indices are considered risky assets, have come under selling pressure. Taking a look at the Ethereum chart, we can see that the cryptocurrency has been trading in a downward channel recently. The price fell below the recent low from 10th of January, confirming that the sentiment is bearish. If downbeat moods prevail during today’s session, the key support to watch can be found in the area near $2,700, which is marked with previous price reactions and lower limit of aforementioned downward channel. On the other hand, the upper limit of the downward channel should be considered as thew nearest resistance.
Etherum D1 interval. Source: xStation5
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Create account Try a demo Download mobile app Download mobile appLooking at the lower time frame (H1), we can see that the cryptocurrency painted a new local low today, but the downward move was stopped at 127.2% Fibonacci retracement of the recent upward correction. Should the current bearish sentiment prevail, and the price breaks below the aforementioned retracement level, the next exterior retracement (161.8%) may draw sellers' attention. On the other hand, if buyers manage to halt declines, the resulting upward correction may reach the upper limit of 1:1 structure (red rectangle).
Etherum H1 interval. Source: xStation5
