Aeternity (AE) Analysis – reaching the 2.5 USD resistance is quite possible

The last analysis of the day will be about the Aeternity, relatively new coin but already showing a great respect to the price action principles. The long-term sentiment here is negative but we see some chances for a bullish correction.

AE is in the channel down formation (blue lines), which started at the end of April. Most recently, we bounced from the lower line of this pattern, which opens us a way for an upswing. The closest resistance is on the 2.5 USD (orange). Oh, by the way, the AE is respecting round levels with a high accuracy. Look at the 3 USD (black) and the 2.5 USD mentioned above. Those areas were significant support and resistance levels.

To wrap things up: our short-term sentiment is positive and we see quite big chances of the price testing the 2.5 USD resistance. In the long-term, sellers are still winning and we should see a further decline towards the red support, around the 1.26 USD.