- Ethereum struggles to maintain a bullish front on Saturday despite the correction from $174 (recent high).
- The 50 SMA in the 1-hour timeframe is positioned to offer initial support aided by the ascending trendline.
Ethereum is struggling to reverse the effects of the bearish pressure felt on Saturday during both the Asian and the European sessions. The bulls are throwing jabs, while their attention is fixated on breaking above the critical short term hurdle at $175.
As per the data on CoinMarketCap, Ethereum is trading 0.37% lower in the last 24 hours. The second-largest cryptocurrency in the crypto industry has a market cap of $18.5 billion. In the same 24-hour period, Ethereum has posted $14 billion in trading volume.
From a technical perspective, Ethereum is on the verge of a breakdown. This fallows the rejection from the recent high at $174. Moreover, the formation of a rising triangle pattern signals that the breakdown around the corner could be devastating to the progress made this week.
I expect the trendline support to come in handy. However, the 50 SMA on the 1-hour chart is in line to stop the bearish action. The longer-term 100 SMA in the same range will also function as key support at $164.63. For some time, this January, Ethereum consolidated between $140 and $142. This region is currently the major support with the potential of preventing a breakdown to December lows around $116.
ETH/USD 1-hour chart