Ethereum: USD/ETH (ETH=) price declined heavily below $170 and traded close to $150 against the US Dollar
In the past few days, we discussed the chances of more downsides in Ethereum below the $170 support against the US Dollar. ETH did decline recently below $170 and weakened more than 7%.
The recent decline was such that the price even broke the $160 support area. Moreover, there was a close below $165 and the 100 hourly simple moving average. Finally, the price traded close to the main $150 support area and a low was formed near $153.
More importantly, bitcoin price is down more than 8% and broke many important supports such as $7,800 and $7,500. Looking at Ethereum, the price is currently recovering and traded above the $155 level.
There was a break above the 23.6% Fib retracement level of the recent decline from the $178 high to $153 low. However, the price is facing a lot of hurdles on the upside near the $162 and $165 levels. Besides, yesterday’s highlighted bearish trend line is intact with resistance near $165 on the hourly chart of ETH/USD.
The 50% Fib retracement level of the recent decline from the $178 high to $153 low is also near the $165 level to act as a strong resistance. Therefore, Ethereum could face a strong resistance if it corrects towards the $165 area.
On the downside, the $155 and $150 levels are important supports. It won’t be easy for the bears to clear the $150 barrier. Thus, there are chances of a decent rebound in the near term above the $162 resistance.
Looking at the chart, Ethereum price clearly retreated from the $152 and $150 support levels. It is showing a few positive signs above $155 and $160. Having said that, the price must recover above the $162 and $165 resistance levels to start a decent upward move. The next key resistances are near the $170 and $172 levels.
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 188.41.
The projected upper bound is: 184.26.
The projected lower bound is: 135.17.
The projected closing price is: 159.71.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 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 36.6716. This is not an overbought or oversold reading. The last signal was a sell 13 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 36.70. 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 34 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 -178.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed down -0.650 at 160.040. Volume was 71% below average (consolidating) and Bollinger Bands were 33% narrower than normal.
Open High Low Close Volume___
160.690 163.430 156.810 160.040 18,881
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 171.51 181.83 211.84
Volatility: 54 85 86
Volume: 45,439 69,704 66,384
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 24.5% below its 200-period moving average and is in an downward 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 bearish on ETH= and have had this outlook for the last 27 periods.