Ethereum: USD/ETH (ETH=) there is a connecting bullish trend line forming with support near $188
This past week, we saw a major drop in ETH price below the $202 support area against the US Dollar. The decline was such that the price even broke the $184 support area. Finally, it traded to a new monthly low at $174 and recently started an upside correction. Besides, there was a decent recovery noted in bitcoin price as well above the $10,200 resistance level.
Ethereum price recovered above the key $190 resistance level and the 100 hourly simple moving average. Moreover, there was a break above the $192 and $195 resistance levels. It tested the $198 level and is currently consolidating gains. It tested the 23.6% Fib retracement level of the upward move from the $184 swing low to $198 high. On the downside, there is a strong support forming near the $190 level and the 100 hourly SMA.
Moreover, there is a connecting bullish trend line forming with support near $188 on the hourly chart of ETH/USD. The $190 support also coincides with the 50% Fib retracement level of the upward move from the $184 swing low to $198 high. Therefore, dips towards the $190 support area might find buyers in the short term. If there is a downside break below $190 and $188, the price could resume its decline.
On the upside, there is a strong resistance area near the $200 and $202 levels. Therefore,. if there is an upside break above the $202 resistance, the price is likely to continue higher towards the $210 and $215 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 224.85.
The projected upper bound is: 221.68.
The projected lower bound is: 163.56.
The projected closing price is: 192.62.
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 17 white candles and 33 black candles for a net of 16 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 52.7477. This is not an overbought or oversold reading. The last signal was a buy 8 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 39.36. 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 1 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 -47. This is not a topping or bottoming area. The last signal was a buy 1 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 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed down -0.500 at 194.790. Volume was 64% below average (consolidating) and Bollinger Bands were 22% narrower than normal.
Open High Low Close Volume___
196.350 197.470 191.630 194.790 24,904
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 197.59 232.89 196.19
Volatility: 77 78 86
Volume: 52,412 67,431 58,010
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 0.7% below its 200-period moving average and is in an upward 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 bullish on ETH= and have had this outlook for the last 1 periods.