Ethereum broke under the bottom of its symmetrical triangular consolidation on the 1-hour chart to signal that bearish moves are in the cards. The price may be due to a pullback of the broken support, which is approaching a new downward trend line.
Applying the Fibonacci retracement tool to the last high and low swing shows that the 61.8% level aligns with the trend line and area of interest close to $ 290. This could be the line in the sand for a pullback on this selloff, as a move beyond the $ 300 mark could signal that the bulls are reloading.
The 100 SMA is above the 200 longer-term SMA to indicate that the path of the least resistance is on the upside. In other words, there is still the possibility that the upward trend will continue. At the same time, RSI is pointing to oversold conditions and becoming higher up could bring buyers back. The Stochastic has reached oversold territory to reflect the exhaustion between sellers and a possible acquisition by bulls.
In that case, the correction could go on for a while, and the Fiber levels could be where the sellers are waiting. The 38.2% level is $ 282.07 and the 50% level is $ 286.32.
Once again the cryptocurrencies are again red because the recovery of stocks and raw materials seems to have attracted traders to traditional markets. This improvement in sentiment in global financial markets has been attributed to the upcoming trade talks between the United States and China this week, with many hoping that the next set of tariffs could be avoided.
It is important to note, however, that these will only be low-level talks and there will probably be no decision taken at this time. This could lead to a return to risk aversion that tends to support cryptocurrencies.
Another factor to watch out for is turbulence in Turkey as the escalation could lead to capital controls that tend to favor bitcoins as well.