- Stability in the market ousted as cryptos descend to test key support levels before bouncing back up.
- Ethereum must come out of the second channel resistance in order for the bulls to focus on $130.
Ethereum has been making almost no progress since the brief waterfall drop on Sunday last week. The world’s third largest crypto was also stuck in a range after it embraced the support at $115. However, the bullish moves lacked the energy to break above the channel resistance at $119.
The trading on Tuesday saw the stability in the market ousted as major cryptocurrencies like Bitcoin, Ripple’s XRP as well as Ethereum broke below significant support zones. Bitcoin, for example, descended below $3,500 to fresh the lows around $3,480 while XRP broke below $0.32 and tested $0.31 support. On the other hand, Ethereum took a trip downstream from the intraday high at $118 and slipped below the support at $115 to form lows close to $113.
However, it is essential to note that the buyers did not stay down to pity themselves for long as they pushed for a reversal that broke past the channel resistance. Unfortunately, the price was unable to sustain growth above $120 culminating in ETH/USD getting stuck within the confines of another narrow channel with resistance at $120.
At press time, Ethereum is dancing with $118.61 while battling to clear the resistance at the 100-day Simple Moving Average (SMA). Besides, a break above this level will face more seller concentration at the immediate supply zone at $119 and the next supply zone at $120. It is vital for Ethereum to escape the current channel resistance and stay above $120. This will allow the buyers to gather strength to push it towards the key resistance at $130.
ETH/USD 15’ chart