Ethereum rejected at resistance

Ethereum has risen from $1,544 to $1,731 level in 3 sessions. Price has respected the upward sloping trend line support but got rejected at the horizontal resistance at $1,700-$1,720. What was once support it is now resistance after the break down.

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Red rectangle -resistance

Blue line- bearish divergence

Black line - support

Ethereum is still in bullish medium-term trend as long as price is above the black trend line support. Bulls need to recapture the $1,700-$1,720 level. The rejection we are witnessing today is not a good sign for bulls. If followed by a break below the black trend line support then we could see more selling pressures push price towards $1.400-$1.370.

The material has been provided by InstaForex Company - www.instaforex.com

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