Ethereum: USD/ETH (ETH=) Price Turns Down Sharply, Further Correction Possible

Ethereum: USD/ETH (ETH=) Price Turns Down Sharply, Further Correction Possible

Ethereum: USD/ETH (ETH=) Price Turns Down Sharply, Further Correction Possible

For a brief stint, ETH became one of the most active assets, and also the basis for rallies in smaller altcoins. ETH is the second most liquid asset after BTC, and saw a significant rise in trading activity in the first months of 2020.

But after weeks of rallying, Ethereum price also shows signs of fatigue. Predictions now envision a temporary dip across the board, with ETH not being an exception.

On Thursday, ETH stabilized around $227.86, after a rapid slide at the start of the new week. ETH looks like entering the downward leg of its second rally in the past 12 months, where prices got near $300, and appreciated against BTC. ETH trading volumes peaked above $28 billion in 24 hours, after lagging for months.

Altcoins remain extremely volatile, losing more than 20% and more after their recent rally. Ethereum price for now has lost only 11% on a weekly basis, but has followed the overall trend.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 256.30.

The projected lower bound is: 193.32.

The projected closing price is: 224.81.

Candlesticks

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 30 white candles and 20 black candles for a net of 10 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 19.8256. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 45.21. 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 9 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 -152.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 12 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 8 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -3.170 at 223.090. Volume was 12% above average (neutral) and Bollinger Bands were 47% wider than normal.

Open     High      Low     Close     Volume___
226.240 234.800 221.960 223.090 164,720
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 250.21 205.96 177.95
Volatility: 81 88 76
Volume: 335,053 210,302 100,592

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 25.4% 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 53 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.