- Ethereum price manages to defend channel support after posting a weekly low at $245.
- Alex Krüger, a crypto economist suggests that the next rally will have the sellers ‘sweating.’
Bulls across the crypto space are waking up on Friday. The Asian session is seeing cryptos especially the major coins flexing their muscles following the drab trading in the last couple of days. Ethereum, for instance, is making attempts to correct upwards after testing weekly lows at $245.
Interestingly, the second-largest cryptocurrency is still in an uptrend in spite of the losses posted this week. An up-trending channel’s support came in handy, putting a stop to the declines. Meanwhile, Ethereum is trading at $261 after adding 1.54% in gains.
Although Ethereum is significantly down from the new yearly highs at $284, analysts such as Alex Krüger believe that while it is time for the buyers to ‘sweat’, Ethereum’s next move upwards will only leave the bears in a catch-up race. Krüger wrote in a tweet:
Late $ETH buyers may be sweating here, but next time it pushes higher, it will be those who are flat who will be sweating. Daily chart buying spots are the fibs, the MAs, $200 and the top ($290), although buying tops requires tight stops / skillful execution.
Ethereum technical picture
Ethereum may be down now, however, it is catching momentum especially if one considers the RSI. The indicator dived from the overbought zone last week to lows just above 30 this week. The recovery seen towards 50 indicates that the bulls are increasing their grip and the situation could turn violently bullish. However, in the short term, Ethereum is likely to stay in a sideways action according to the sideways trending momentum indicator at 0.00.
Apart from the channel support, ETH/USD downside is protected at $260, the 100SMA on the 4-hour chart and $240. The upside, on the other hand, is limited by the 50SMA, $270, $280 and the yearly highs at $284.
ETH/USD 4-hour chart
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