Tue, May 30, 2023 @ 12:20 GMT
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ETHUSD Consolidates After Advance Pauses

ETHUSD (Ethereum) has been in a steady uptrend since the beginning of the year, generating a fresh six-month high of 1,846 in mid-March. However, the digital asset experienced a minor pullback after reaching overbought conditions, with the price trading within a range for the past few daily sessions.

The momentum indicators currently suggest that the bullish forces are subsiding. Specifically, MACD histogram has crossed below its red signal line but remains in the positive region, while the stochastic oscillator posted a bearish cross within its 80-overbought zone.

Should selling pressures persist, initial resistance could be met at 1,715, which has acted both as support and resistance in 2023. Escaping the rangebound pattern, the price may descend towards the February low of 1,460 before the March bottom of 1,370 appears on the radar. Even lower, the November double-bottom region of 1,070 could provide downside protection.

On the flipside, if the positive momentum strengthens, Ethereum might test the recent rejection region of 1,846. A break above that zone could turn the spotlight to the August peak of 2,030. Violating this area, the bulls could aim for the 2,450 hurdle.

Overall, ETHUSD has been stuck in a range for the last few sessions, appearing unable to post a fresh higher high. Hence, a break beneath the lower boundary of its sideways move could lead to significant losses.

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