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- The ETH / USD continues to move into the formation of the pennant
- The resistance at $ 85.00 limits a potential recovery.
ETH / USD is changing hands at $ 85.86. The currency lost almost 4.5% on a daily basis and remained unchanged from the start of Friday. The third largest currency with a market capitalization of $ 8.9 billion lost more than $ 400 million of its value in 24 hours trading in a narrow range with a downward trend.
Technical framework of Ethereum
On the 4-hour chart, the formation of the pennants has yet to be confirmed. The ETH / USD managed to stay above $ 85.00 after a short-term dip at the Asian minimum $ 84.94. It is a good sign that the price could recover towards the top line of the pennant currently at $ 91.50. However, a higher sustainable move seems unlikely as the area is strengthened by SMA50 (4 hours). We will need to see a big change in market sentiments for innovation that will occur.
Both the Relative Strength Index (RSI) and the Momentum indicator are flat, highlighting market indecision and implying the continuation of rangebound trading in the last hours. RSI remains in a neutral zone, which also supports the consolidation case.
Local support comes to $ 85.00. It is strengthened by the Asian bass and the lower line of the above mentioned pennant. This area will probably interrupt the sell-off for the time being, however, a strong breakthrough will pave the way to the recent $ 82.15 minimum. Once underneath, the long-term support area $ 60.00 and $ 50.00 will come into focus.
ETH / USD, 4-hour chart
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