An outlier in the market, Theta had strong bullish momentum behind it. Ethereum faced options expiry and could see significant volatility in the coming hours, and Chainlink continued to trend lower on the charts.
Ethereum [ETH]
Source: ETH/USD on TradingView
On Awesome Oscillator, lower (less bearish) peaks were formed as ETH slowly climbed upward after dropping to $1555 as a local low. The $1635-$1665 region represented a former region of demand, now likely flipped to supply.
A similar bounce, with lower peaks for ETH on the AO, was observed a few days back as ETH bounced from $1655 to $1735 before a drop, and the same scenario could play out in the highlighted region of supply.
Such a drop would likely see ETH drop to $1450 as support while climbing above the supply region would indicate some strength from the bulls.
Chainlink [LINK]
Source: LINK/USD on TradingView
On the 4-hour chart, LINK continued to labor under bearish pressure. The region of demand at $24.84-$25.86 saw LINK bounce, but another move downward appeared to be in the works.
Stochastic RSI climbed toward overbought territory while RSI showed a value of 39.5, indicating strong bearish momentum.
In the coming hours, it is likely that LINK would sink beneath the demand region to find support at the $23.24 level.
Theta [THETA]
Source: THETA/USDT on TradingView
Short-term bias for THETA flipped to bullish after the $10.5 support level was briefly tested, following the announcement of mainnet 3.0 launch being pushed to June, but THETA managed to recover. It climbed past the 50% retracement level and flipped the 38.2% level from resistance to support as well.
MACD climbed back above the zero line to signal bullish momentum and was rising on the hourly chart, while OBV continued its uptrend to show that buying volume outweighed selling volume.
