When the crypto market started to drop, the whole space started to decline. Ethereum is one of the best performing blockchain's ecosystem. After a sharp decline in the cryptocurrency, we started to see a surge in the bullish direction with ETH forming higher highs and higher lows. Market tapped the 2700 and is being retraced to the minor support at 2600. This would be the area for us to go long. 

With the trendlines, market is in a channel. ETH has broken out for buys with the forced bullish candle. After the breakout buy, te price action has validated the breakout. Therefore, on a slight retracement towards the 2600, we would be looking to go for a buy.

At the support level, we have a fibonacci retracement of 75-78.6% which is in confluence with the support level. This support level was bounced perfectly with the support level. Along with this, we also see a double bottom forming at the retracement level.

With the EMA's, both of them broke out for sells and have a bearish death cross. The EMA 50 is being retested at the resistance level. Even if prices are rejected at this level, we still have to be vary of the minor support level at the 2600, which is in confluence with the retracement.

Both the oscillators are in a bullish region. The oscillators are paving its way down from the over bought region. We might see the oscillators being neutralized at the price levels where the ETH would be at the support.

ETH is a strong project with high valuations. We will be looking to go long from the support level. If the market breaks the support, then we will take the stop loss and look for another setup.

Ethereum has broken a major descending trendline

Feb 26 2022

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