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Ethereum: USD/ETH (ETH=) Continues Correcting Growth

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Ethereum: USD/ETH (ETH=) Continues Correcting Growth

The British financial regulator Financial Conduct Authority has declared that it is not going to regulate the BTC and ETH, as well as other cryptocurrencies. In the document signed the cryptocurrencies are regarded as exchange instruments. Such coins are decentralized and in most cases used exactly as exchange means. The FCA has specified that such digital assets are out of their jurisdiction. 

However, earlier the British regulator planned to ban selling such contracts as futures for the BTC to retail investor, which could put serious pressure on the cryptocurrency market in general.

Some time earlier, a computer game developer Blockade Games, which is trying to realize the Bitcoin Lightning Network as the interface for the Ethereum contracts, declared that the future of digital money belongs to the BTC. The second cryptocurrency ETH is going t be used for less functional projects, such as games on the basis of blockchain.

The company representatives also noted that a lot of users of different games prefer keeping their money in the Bitcoin. Anyway, such situations when the developers use to networks for project creation will give mid-term support to the Ethereum as well.

On H4, the Ethereum keeps forming an ascending channel, moderate but stable. This trend is the correction of the previous decline. The quotations are currently aiming at 38.2% ($239.45), upon reaching which the market may rise to 50.0% ($254.30) Fibo. As the main support, the current minimum of $190.41 should be regarded. A breakaway of this level may signal a continuation of the mid-term descending trend.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 264.67.

The projected lower bound is: 185.97.

The projected closing price is: 225.32.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 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 58.8435. This is not an overbought or oversold reading. The last signal was a sell 1 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 47.54. 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 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 -0.240 at 226.070. Volume was 75% below average (consolidating) and Bollinger Bands were 67% narrower than normal.

Open     High      Low     Close     Volume___
226.300 233.150 221.060 226.070 17,501
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 219.74 256.53 190.94
Volatility: 39 92 86
Volume: 52,795 71,188 56,939

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 18.4% above 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 25 periods.

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