Ethereum broke out past its previous all-time high but faced some selling pressure near $1700. Uniswap continued to climb up the charts but showed a bearish divergence and could be forced towards $17.4-$18 before its next leg up while Elon Musk’s tweets sent Dogecoin soaring.
Ethereum [ETH]
Source: ETH/USD on TradingView
The ascending triangle that ETH formed saw a bullish breakout. The $1700 area saw ETH face some selling pressure and the price was pushed back toward $1600. The MACD formed a bearish crossover to signal some weak bearish pressure.
This could see ETH dip toward the $1550-$1600 region. This is an area that buyers could step in, however, the funding rate was a relatively high value of 0.135% on Binance and higher on Bybit. Margin trading positions were highly overcrowded to the long side, with 96% of ETH/USDT being long over the past 24 hours.
This is not indicative of an imminent drop, but overcrowded trades have a habit of sharp drops to reset before another move up to liquidate highly leveraged positions.
Uniswap [UNI]
Source: UNI/USDT on TradingView
The 4-hour bearish divergence continued to make itself seen as UNI made higher highs while the RSI made lower highs. This divergence points toward a pullback to $18 for UNI, although the timing for this pullback is uncertain.
A pullback might not occur if the RSI and the price begin to spike higher once more. Yet the falling trading volume over the past few days points toward a lack of conviction at the time of writing, and volume needs to pick up to indicate a strong move in the making for UNI.
Dogecoin [DOGE]
Source: DOGE/USDT on TradingView
Elon Musk’s claims of “people’s crypto” was one of the multiple tweets he sent over the past 24 hours that sent DOGE soaring 50% before being forced back lower. Mia Khalifa managed to, once again in the span of a few days, call the local top for DOGE as it plunged 20% before an hour of her tweet.
The Supertrend still gave a buy signal, and the Fibonacci retracement level of 23.6% lay at $0.0373. A drop below $0.033 for DOGE would presage a further correction for the coin.
