Ethereum: USD/ETH (ETH=) Plummets to $185 as Selling Pressure Increases
Ethereum (ETH) has been one of the many victims of the recent widespread sell-off in the crypto markets, which was sparked when Bitcoin faced a sharp drop that sent it to lows of roughly $9,500.
This latest drop has sent Ethereum reeling down 10% to a major support level at $185, and this latest drop may have been perpetuated by a Chinese Ponzi scheme that scammed a total of 800,000 ETH from unsuspecting investors.
Ethereum Plummets to $185 as Selling Pressure Increases
At the time of writing, Ethereum is trading down just under 10% at its current price of $185, which marks a significant drop from its 24-hour highs of over $200.
ETH’s recent leg down came about as the entire crypto market faced a massive sell-off, which caused many altcoins to dump 10% or more.
This drop came about just prior to Bitcoin facing a period of capitulation that led it to lows of $9,500. BTC has since recovered from this drop and is now trading above the key psychological price level of $10,000.
In spite of Bitcoin’s recovery, most altcoins are still trading at or just above their 24-hour lows, with Ethereum posting a minor recovery from its daily lows of just over $176.
Additionally, Ethereum’s recent sell-off and failure to recover has caused it to shed even more off of its market dominance, which is currently at 7.55%, down from its monthly highs of nearly 9%.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 228.35.
The projected upper bound is: 213.53.
The projected lower bound is: 153.25.
The projected closing price is: 183.39.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 18 white candles and 32 black candles for a net of 14 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.
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 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 27.6137. This is not an overbought or oversold reading. The last signal was a buy 5 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 30.64. 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 30 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 -147.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 sell 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed down -1.430 at 185.430. Volume was 78% below average (consolidating) and Bollinger Bands were 36% narrower than normal.
Open High Low Close Volume___
186.880 189.790 184.270 185.430 14,875
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 205.63 239.87 194.91
Volatility: 64 79 86
Volume: 50,766 68,930 57,677
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 4.9% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 2 periods.
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