On low timeframe (LTF) charts, Ethereum (ETH) has broken down from what was looking like a bullish ascending triangle attempt at a break up. The leading altcoin is now sent back down on the ETH/BTC chart for another round of bottom-finding – with a third retest of the local bottom possible.
We start on the 4-hour to get a picture. We see that what looked like an ascending triangle, a bullish pattern anticipating a break up, has instead broken down after seeing no support at the critical moment.
Curiously, we see that the failure came on almost no volume, as well: this paints a picture not of ambivalence but of apathy in the market. With the MACD sliding back to the downside, it looks like ETH/BTC could easily retest the main local support around ₿0.0176.
Stepping back to the daily chart, we see that the local support has been formed by price lows already. Price is already trending below support levels not breached for over two years, and the ETH/BTC markets have been looking for bottom for months now. This exercise is clearly not over.
We can again point to lackluster volume on this chart. If it gets down to support again, we might expect some volume to kick in for buy support.
On the daily ETH/USD chart, we see that Ethereum has been struggling to retake $200 for some time, after languishing below it. The leading altcoin is here held by the 2018 capitulation support – which gave way just before ETH fell to double-digit lows versus USD in late 2018.
We see lack of trade volume here, too, but also a promising uptrend on the RSI lows versus price lows. ETH’s failure to lay a bottom on its ETH/BTC pairing is worrying, though, even for its USD pairing: this means that any upside Bitcoin sees will not trickle down to ETH, whereas Bitcoin falling will not be canceled out by a healthy ETH/BTC bottom.
Looking on the weekly ETH/USD chart, things also don’t look great. A large uptrend support drawn from weekly candle bodies looks to be being breached – although a dramatic fall through has not yet occurred.
All told, Ethereum looks mostly flaccid. Volume is found nowhere, and only some faint signs of strength are found on the precarious ETH/USD chart. If ETH/BTC gets down to the local support level again, we will have an important decision point to watch for.
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