Sat, Feb 04, 2023 @ 12:15 GMT
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ETHUSD Trades Sideways But Sets for ‘Death Cross’

ETHUSD (Ethereum) experienced a sharp decline in the four-hour chart, with the price falling below both its 50- and 200-period simple moving averages (SMAs). Even though the digital coin has been trading sideways in the last few sessions, the completion of the impending ‘death cross’ between its 50- and 200-period SMAs could spark a selloff.

The momentum indicators suggest that near-term risks are tilted to the upside, diverging from the bearish ‘death cross’ signal. Specifically, the MACD histogram remains above both zero and its red signal line, while the RSI is hovering above its 50-neutral mark.

To the upside, bullish actions could propel the price towards the recent resistance of 1,229, where the 50- and 200-period SMAs are likely to converge. Piercing this threshold, the bulls could aim for the December peak of 1,352. Even higher, further advances might come to a halt at the 1,500 support territory, which could now act as resistance.

Alternatively, should sellers push the price lower, the recent support of 1,200 could act as the first line of defence. If that floor collapses, Ethereum could test the December low of 1,150. A violation of the latter could open the door for the double-bottom region of 1,071.

Overall, ETHUSD appears to be stuck between opposing directional forces, waiting for developments that could provide a fresh directional impetus. Hence, the completion of the ‘death cross’ could probably trigger a retreat towards its recent lows.

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