Ethereum Price Forecast: ETH/USD bearish pattern spotted as $215 beckons
- 29th June 2020
- Posted by: Hakeem
- Category: CryptoCurrency
- Ethereum price flirts with the 50 SMA after rejection at $228.
- ETH/USD could plunge back to $215 support in case the impact of the bearish flag is followed through.
- Support at $224 and $220 is expected to stand out in the near term.
Ethereum’s trend has turned bearish just before the European session despite holding in the green during the Asian session on Monday. Most of the major cryptocurrencies are beginning to grapple with an increase in selling pressure. Bitcoin, for instance, is trading at $9,090 after opening the session at $9,114. Ripple, on the other hand, is down 0.24% to trade at $0.1765.
The second-largest cryptocurrency is down by 0.35% on the day after correcting lower from $224.89 to $224.18. The prevailing trend is extremely bearish. In addition, the expanding volatility shows that losses are likely to increase in the coming sessions.
Ethereum flag pattern scenario
Looking at Ethereum’s price action in the last few weeks, we see a cryptocurrency with resilience. Ether has tested the resistance at $250 more than two times in June alone. Unfortunately, it has failed to break above this zone in all of the accounts. Support at $230 came out strongly, especially during last week’s trading. Losses, however, overwhelmed the bulls forcing Ethereum to embrace the support at $215.
A recovery that ensued following the dip on June 27 lost steam at $228. On the downside, immediate support has been established at $225. The price is flirting with the 50 SMA amid attempts to stop Ethereum from sliding farther down due to the formation of a bearish flag pattern. These types of flag patterns tend to signal trend continuations. In this case, ETH is likely to breakdown to $215 if support at $224 and $220 fails to hold.
Meanwhile, the MACD shows that buyers have slightly more influence over the price than the bulls. The MACD is holding above the midline in addition to featuring a bullish divergence. The RSI has also bounced off support at 50 and is pointing north at the time of writing. If the technical picture improves slightly, Ether could find its way above $225 and even extend the leg past $230.