Ethereum was in a delicate position on the charts. Trading between its EMA Ribbons and the 200-SMA (green), ETH faced pressure from either side. However, bulls needed to go the extra mile to save ETH from additional drawdowns. A close above $3,200 would help flush out majority of sellers and present opportunities for bullish traders. At the time of writing, ETH traded at $3,001, up by 1.4% over the last 24 hours.
Ethereum Daily Chart
Ethereum was positioned more favorably for sellers after its candles slipped below the EMA Ribbons. Now functioning as resistance, these moving average lines would continue to limit short-term market rallies moving forward. A crossover between 20 and 50 SMA’s five days ago was also expected to restrain ETH’s progression on the chart.
To overcome these uncertainties, ETH needed to close above the junction between $3,200 and its EMA Ribbons. Such a move would allow bulls to push through to $3,400 with little counter-resistance. From there, a run up to $3,700 can be achieved as long as the broader market provides support.
Bulls could also hope that an emerging symmetrical triangle functions as a reversal pattern and provide the impetus needed for an upwards run. However, bears would have an easier task triggering a breakdown from this pattern. A move below $2,900 would drag ETH to its 200-SMA (green), from where traders would hunt for shorting opportunities.
Meanwhile, the Relative Strength has not found the strength to climb above 50 just yet. The index needed to rise above 55 to fuel some more buying pressure. Similarly, the Awesome Oscillator and Directional Movement Index continued to flash bearish readings.
Conclusion
The coming days would see Ethereum extend its symmetrical triangle and prepare for a breakout. The bears were in a prime position to capitalize on this pattern and initiate another sell-off. On the other hand, a close above $3,200 would help formulate a bullish argument from where $3,700 can be targeted.