Ethereum: USD/ETH (ETH=) struggling to correct higher above the $215 resistance
In the past few sessions, there was a steady decline in ETH price from the $216 resistance against the US Dollar. More importantly, bitcoin price gained bearish momentum and declined towards the $10,500 bearish target (as discussed in the weekly forecast). However, Ether’s price remained above the $200 support area and no new weekly low was formed.
The last swing low was formed near $203 and the price is currently correcting higher. It broke the $206 level plus the 23.6% Fib retracement level of the recent decline from the $216 high to $203 low. However, the price is still trading well below the $210 level and the 100 hourly simple moving average. Additionally, there is a major bearish trend line forming with resistance near $208 on the hourly chart of ETH/USD.
The 50% Fib retracement level of the recent decline from the $216 high to $203 low is also acting as a resistance. Therefore, the price remains in a bearish zone below $210. Above the mentioned $210 resistance, the next resistance could be near the $212 level and the 100 hourly SMA. The main resistance on the upside is near the $215 and $216 levels.
Looking at the chart, Ethereum price is clearly trading in a bearish zone below $215. However, it is holding the key $200 support area. As long as there is no daily close below the $200 support, there are chances of a short term rebound. Having said that, it won’t be easy for the bulls to gain traction above the $215 and $216 resistance levels.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 244.84.
The projected lower bound is: 169.00.
The projected closing price is: 206.92.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 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 45.4454. This is not an overbought or oversold reading. The last signal was a buy 3 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 40.62. 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 28 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 -95. This is not a topping or bottoming area. The last signal was a buy 0 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 16 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed up 0.750 at 208.920. Volume was 82% below average (consolidating) and Bollinger Bands were 64% narrower than normal.
Open High Low Close Volume___
208.190 210.690 204.630 208.920 12,753
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 216.24 245.33 194.25
Volatility: 52 90 86
Volume: 52,196 70,096 57,516
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 7.6% 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 3 periods.
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