Ethereum: USD/ETH (ETH=) Drops Towards $210 as Sellers Step Up
At the time of writing, Ethereum is trading down nearly 2.5% at its current price of $211.75, which marks a fairly deep retrace from its daily highs of nearly $219, but a slight bounce from its daily lows of $210.
Ethereum tried and failed on multiple occasions to decisively break above $220 but was met with significant selling pressure with each visit above this price level.
Because $220 proved to be an insurmountable level of resistance for ETH to break above, it has since shed a significant amount of its recent gains but is still trading up significantly from its one-month lows of below $170.
Nik Patel, a popular cryptocurrency analyst, spoke about Ethereum’s recent price action in a blog post, explaining that the next key resistance level it faces in the near-term exists at $230, which is nearly 10% higher than its current price.
“Looking at ETH/USD, the next area of significance is the support/resistance flip from which price originally broke down at $230; however, prior to this, I would like to get long on a pullback towards trendline support,” he explained while pointing to a trendline support that exists within the lower $200 region.
Could a Dip Below $210 Spark an ETH Downtrend?
Although Patel believes that ETH will revisit its trendline before climbing to $230, UB, another popular crypto analyst, explained in a recent tweet that $210 is a key support level and that a break below it potentially opening the gates for a drop into the $190 region.
The coming days and weeks will likely elucidate Ethereum’s near-term trend, which may be largely swayed by Bitcoin’s price action in the coming days and weeks.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 227.94.
The projected lower bound is: 188.09.
The projected closing price is: 208.01.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 45.3721. 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 59.82. 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 3 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 49. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 20 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed up 0.260 at 208.280. Volume was 56% below average (consolidating) and Bollinger Bands were 4% wider than normal.
Open High Low Close Volume___
207.200 212.640 205.330 208.280 30,314
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 206.92 193.09 206.78
Volatility: 64 65 83
Volume: 76,177 65,622 62,183
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.
FOREX ETH= is currently 0.7% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on ETH= and have had this outlook for the last 10 periods.