Ethereum was in a delicate position on the charts. Negotiating between its EMA ribbons and 200-SMA (green), ETH has come under pressure from both sides. However, bulls needed to go the extra mile to save ETH from additional drawdowns. A close above $ 3,200 would help eliminate the 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 under EMA ribbons. Now functioning as resistance, these moving average lines would continue to limit short-term market rallies moving forward. A cross between 20 and 50 SMA five days ago should also dampen the advance of ETH 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 the bulls to jump 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 might also hope that an emerging symmetrical triangle works as an inversion pattern and provides the necessary impetus for a bull run. However, bears would have an easier task triggering a breakdown from this pattern. A move below $ 2,900 would push ETH towards its 200-SMA (green), from where traders would look for short selling opportunities.
Meanwhile, the Relative Strength has not found the strength to climb above 50 just yet. The index had to move above 55 to fuel further buying pressure. Similarly, the Awesome Oscillator and Directional Movement Index continued to flash bearish readings.
Conclusion
The next few days would see Ethereum expand 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 flip side, a close above $ 3,200 would help formulate a bullish argument from which $ 3,700 can be targeted.
