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Ethereum Aims to Reverse Its Bearish Trend

2 mins
Updated by Valdrin Tahiri
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In Brief

  • Ethereum is approaching support at ₿0.0205. The next support lower is found at ₿0.019.
  • The price is following a long-term ascending support line.
  • Ethereum is possibly trading inside a short-term descending channel and has generated bullish divergence.
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The Ethereum price is approaching a minor support level. While it could initiate a bounce if it gets there, it is more likely that it will decrease towards the long-term ascending support line.
Ethereum has been decreasing rapidly since April 26, after reaching a high of ₿0.0206. Cryptocurrency trader @TraderX0X0 stated that after this decrease, the Ethereum price is close to reaching a major support level.
Ethereum Price Movement
Source: Twitter
TraderX0X0 summarized their thoughts stating:
$ETHBTC – Finally coming into the level I wanted to speculate buying ETH Really needs to hold this level otherwise most likely it drops down to the yearly open as the next level of interest If btc starts breaking down then not sure why ETHBTC will hold up
Note: This article will deal with the ETH/BTC pair. For the ETH/USD analysis, click here.

Ethereum’s Support Levels

The Ethereum price is approaching the minor support level found at ₿0.0205. The price reached this level on March 26 and promptly initiated an upward move. The current period is similar to that of March 26, as both times ETH fell below its 200-day moving average (MA). While this is considered a bearish development, it is worth keeping an eye on if the same movement transpires this time around. However, the more likely place for a reversal would be found at ₿0.019. This is both a major support level and also coincides with the long-term ascending support line that’s been in place since September 2019.
Ethereum Support Levels
Ethereum Chart By Trading View

Descending Channel

In the short-term, the price is trading inside a descending channel. At the time of publishing, it was trading directly above the support line of this channel, along with the support area from the previous section. Furthermore, the RSI has been generating bullish divergence. Therefore, an upward move towards the resistance line of the channel seems almost certain, and a breakout could occur. However, this is more likely to be a short-term occurrence, after which the price decreases towards the long-term ascending support line.
Ethereum descending channel
Ethereum Chart By Trading View
To conclude, the Ethereum price has reached an important support level that could initiate a short-term bounce. However, it is more likely that the price decreases afterward and falls back to the long-term ascending support line.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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