Ethereum: USD/ETH (ETH=) Is At Major Crossroads

Ethereum: USD/ETH (ETH=) Is At Major Crossroads

After a fresh decline, Ethereum price found support near the $143 level against the US Dollar. ETH traded as low as $143.21 and later corrected above the $150 level and the 55 simple moving average (4-hours).

Besides, there was a break above the 50% Fib retracement level of the downward move from the $158 swing high to $143 swing low. However, the price struggled to clear the $152 resistance area.

The bulls made two attempts to clear the $152 resistance area, but it failed to gain strength. Moreover, the price failed to settle above the 61.8% Fib retracement level of the downward move from the $158 swing high to $143 swing low.

At the outset, there is a major contracting triangle forming with resistance near $151 on the 4-hours chart. On the upside, Ethereum price seems to be facing a lot of hurdles near the $150, $151 and $152 levels.

If there is a clear break above the $152 resistance, the price could continue to rise towards the $158 level. The next major resistance is near the $162 zone.

An intermediate resistance is near the 76.4% Fib retracement level of the downward move from the $158 swing high to $143 swing low. On the downside, there are key supports near $145, $143 and $142.

Therefore, a daily close below the $142 support area might put a lot of pressure on the bulls. In the mentioned case, the price is likely to accelerate lower below $140 and $136. The next major support area is near the $132 level.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 160.27.

The projected lower bound is: 128.63.

The projected closing price is: 144.45.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 27.3218. This is not an overbought or oversold reading. The last signal was a buy 6 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 34.62. 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 buy 6 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 -112.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 15 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 buy 9 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -0.610 at 145.000. Volume was 80% below average (consolidating) and Bollinger Bands were 73% narrower than normal.

Open     High      Low     Close     Volume___
145.610 146.930 144.700 145.000 12,371
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 147.45 168.62 207.43
Volatility: 32 59 76
Volume: 65,189 55,625 65,753

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 30.1% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 21 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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