Ethereum did not trigger our buy levels at $630, suggested in the previous analysis. It has turned down from the 20-day EMA and has broken the trendline support. It is currently trying to hold above the resistance line of the descending channel. If this support breaks and it re-enters the channel, it can slide to $540.
The 50-day SMA is rising while the 20-day EMA is flat. If the bulls manage to hold the resistance line of the channel and push prices above $630, it will indicate strength. Therefore, we retain our buy recommendation provided in the previous analysis.
After initiating long positions, if the ETH/USD pair struggles to break out of the 50-day SMA, the traders can raise the stops to breakeven.