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Ethereum: USD/ETH (ETH=) Holders Flock to Stake their Tokens, but Ether Shows Weakness at Current Levels

$ETH #Ethereum #Crypto #Cryptocurrencies #FX #Trading #Markets

Ethereum
Ticker: ETH=
Price: $555.10

Ethereum Outlook

Though users have staked almost 1.3 million ETH in preparation for Ethereum 2.0, there has been a substantial decline in the number of new daily addresses created in the past few days.

Roughly 180,000 addresses were joining the network on Dec. 5. This number has plummeted to 108,000 a day, representing more than a 70% drop.

The downward trend in network growth is a red flag for near-term price growth.

Usually, a sustained decline in network growth is a leading indicator of deteriorating prices. The lack of newly-created addresses tends to affect the regular inflow and outflow of tokens in the network, and hence liquidity.

When looking at the TD sequential indicator, this thesis holds.

This technical index presented a sell signal in the form of green nine candlesticks on Ether’s 1-week chart. The bearish formation suggests that a spike in sell orders around the current price levels may lead to a steep decline that lasts up to four weekly candlesticks.

A glimpse at Ethereum’s weekly chart reveals that the TD setup has been incredibly accurate at anticipating local tops. The last three sell signals provided by this indicator were all validated, resulting in considerable corrections.

By measuring the Fibonacci retracement index from mid-March’s low of $88 to the recent high of $637, multiple targets can be defined. Based on this technical indicator, a spike in sell orders around the current price levels could push Ether to $430.

But if the selling pressure is strong enough, prices may fall towards the next critical area of support, around $360.

Though indicators suggest that Ethereum is poised for further losses, the $367 resistance must hold.

Failing to do so will likely ignite a state of FOMO among market participants as ETH could rise to $800.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 626.99.

The projected lower bound is: 488.60.

The projected closing price is: 557.79.

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 28 white candles and 22 black candles for a net of 6 white candles.

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 35.4259. This is not an overbought or oversold reading. The last signal was a sell 14 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 52.03. 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 14 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -21.290 at 554.600. Volume was 46% below average (neutral) and Bollinger Bands were 16% wider than normal.

Open    High    Low     Close    Volume
575.830 578.000 552.990 554.600  238,488
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period    50-period    200-period
Close:           586.21       487.17       360.20
Volatility:      52           84           77
Volume:          482,870      484,332      469,071

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 54.0% above its 200-period moving average and is in an upward 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 bullish on ETH= and have had this outlook for the last 61 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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