Home Crypto Ethereum: USD/ETH (ETH=) could extend its decline towards the $175

Ethereum: USD/ETH (ETH=) could extend its decline towards the $175

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Ethereum: USD/ETH (ETH=) could extend its decline towards the $175

This past week, ETH started a strong rise above the $175 resistance against the US Dollar. Moreover, the pair broke the key $185 resistance area and settled above the 100 simple moving average (4-hours). It opened the doors for more gains above the $190 resistance. Finally, the price traded close to the $200 level and a new monthly high was formed near the $198 level.

Later, there was a sharp decline in Ethereum and the price traded below the $185 support area. Additionally, there was a break below the 50% Fib retracement level of the last major wave from the $167 low to $198 high. More importantly, there was a break below a major bullish trend line with support near $188 on the 4-hours chart of ETH/USD. The price even spiked below the $182 support and the 100 SMA.

At the moment, the price is consolidating near the $180 support area and the 100 SMA. Moreover, the 61.8% Fib retracement level of the last major wave from the $167 low to $198 high is also protecting losses. If there is a downside break below the $180 support, there are chances of an extended decline towards the $175 support area in the near term.

On the upside, an immediate resistance is near the $185 area. If there is a successful break above the $185 resistance, there are chances of a fresh increase. The next resistance is near the $190 level, above which the price could continue to rise towards the main $200 resistance area.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 205.32.

The projected lower bound is: 155.84.

The projected closing price is: 180.58.

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 22 white candles and 28 black candles for a net of 6 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 36.3483. This is not an overbought or oversold reading. The last signal was a sell 2 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 48.52. 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 23 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 13. This is not a topping or bottoming area. The last signal was a sell 1 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 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -1.300 at 180.750. Volume was 91% below average (consolidating) and Bollinger Bands were 53% narrower than normal.

Open     High      Low     Close     Volume___
183.880 184.500 176.330 180.750 5,913
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 181.10 182.65 210.78
Volatility: 69 85 89
Volume: 62,306 73,092 66,321

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 14.2% below 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 16 periods.

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