Set to test descending channel support near $ 260

  • Ethereum wavers in descending channel, bias remains bearish near-term.
  • Upside attempts capped by a cluster of resistances near 270/271 region.

The second most favorite cryptocurrency keeps its weekend bearish bias intact, having lost about 2% over the last 24 hours, as the bears continue to guard the key 270 level amid a broader market sell-off. The No. 2 digital currency market value, stand at a market capitalization of $ 28.55 billion.

In the day ahead, the ETH/USD pair looks poised to test the 260-support area, as observed in the hourly chart that shows prices maintaining its range in a descending channel. Overall, the coin is trending lower amid moderate volatility, with the upside attempts unable to clear the stiff hurdles placed 270 region, where the descending channel resistance and downward sloping 21-hourly Simple moving average (HMA) coincide.

Hence, the lower targets at the bottom of the channel near 260 levels appear more likely to be tested, with the hourly Relative Strength Index (RSI) inching lower from the overbought territory.

Only a heavy rush of sellers or buyers will determine a breakout in either direction, until then the prices will continue to wave in a $ 10 range, with the immediate bias shifting in the favor of the bears.

ETH/USD, 1-hour chart

Levels to watch

 

Crypto Destroyer

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