ETH - What to Watch for This Week After many week of consolidating in our triangle, we have finally come to a decision point.
In simple terms, ETH was holding the $2,570-$2,630 range as support and the $2,790-$2,850 level as resistance.
Now, for the first time since creating our uptrend price has created a micro lower low. This has caused price to break down from our triangle which gives us a measured move of a breakdown to around the $2,350 level.
Now it is possible for price to rebound to the $2,630-$2,690 level to retest our old support as new resistance. If that scenario does play out and sellers come in at our trendline of old support then expect downside momentum to continue to that downside target (this would likely coincide with BTC dropping below $90k once more).
Macro timeframes are still bullish with ETH maintaining its 200 MA on the weekly, and the 21 and 50 MA on the monthly.
If we can reclaim our old support trendline again then the short term momentum will flip back to the upside. But our market structure right now is signaling a slight push lower either very soon or if that trendline of old support gets tested and sellers turn that into a level of resistance.
