Can Ethereum: USD/ETH (ETH=) Hold Above $200 To Prevent Further Drops?

Can Ethereum: USD/ETH (ETH=) Hold Above $200 To Prevent Further Drops?

Ethereum started the weekend off pretty well as it managed to rise into the resistance at $250, however, upon reaching this level, the market rolled over and reversed. As it dropped, of fell beneath support at the 2-month-old rising trend line and continued to drop until the cryptocurrency managed to find support at $200 (specifically $198) before bouncing higher again.

More specifically, it fell into support at $190 but quickly recovered and moved higher. It is now attempting to overcome resistance at $205.

Short term prediction: BEARISH

Ethereum cannot be seen as anything other than bearish at the moment. It would need to break back above $227 to be considered as neutral and a further break above $250 could possibly turn it bullish, but that is some distance away.

If the sellers push ETH lower, the first level of support is located at $200. Beneath this, we can expect more support at the $191/$190 level. If the selling pressure continues beneath $190, additional support is located at $183 (.786 Fib Retracement), $181, and $180.

On the other hand, the first level of resistance to break is at $205. Above this, resistance lies at $213, $220, $227, $240, and $250.

The RSI is now beneath the 50 level and has flatlined. If it starts to rise back toward 50, this would be a signal that the selling momentum is starting to fade. It would still need to break above 50 to confirm that the buyers are in charge again.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 236.31.

The projected lower bound is: 167.22.

The projected closing price is: 201.77.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 17.4749. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 12 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 39.86. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 21 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -139.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 9 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 20 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -1.740 at 201.120. Volume was 54% below average (consolidating) and Bollinger Bands were 44% wider than normal.

Open     High      Low     Close     Volume___
202.870 204.190 199.690 201.120 83,816
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 220.38 220.54 179.67
Volatility: 106 93 78
Volume: 309,518 266,378 117,296

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX ETH= is currently 11.9% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of ETH= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on ETH= and have had this outlook for the last 11 periods.

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