Ethereum: USD/ETH (ETH=) Breaks Below Key Ascending Trendline
Ethereum has seen some notable overnight losses that have slightly outpaced those posted by Bitcoin and many other major altcoins, with ETH erasing a portion of the gains that were incurred as a result of its recent rally.
This downturn has led the crypto to decline beneath a key bullish trendline that had been previously supporting its price action, with this potentially proving to be a dire sign of what’s to come next.
This also comes as multiple traders from Heffx note that they are targeting further short-term downside for the cryptocurrency.
ETHEREUM REELS TOWARDS $150 AS ANALYSTS FLIP SHORT
At the time of writing, Ethereum is trading down over 4% at its current price of $153, which marks a notable decline from daily highs of $165 that were set at the peak of the crypto’s rebound seen yesterday afternoon.
This rally came about in tandem with that seen by Bitcoin and proved to be highly fleeting, with ETH and most other cryptocurrencies plummeting after BTC faced a strong rejection at $7,200.
Over a one-week period, Ethereum is trading down from highs of $175, and just set fresh lows at $152 earlier this morning.
Prior to today’s drop, the crypto had found significant support at $155, although bull’s inability to hold it above this level seems to point to some underlying weakness amongst buyers.
This has led one popular pseudonymous trader on Twitter to note that he is currently shorting the second largest cryptocurrency, with a near-term downside target set at $145.
It is highly probable that Ethereum will continue closely tracking Bitcoin in the hours and days ahead, which means that this potential drop could hinge on BTC breaking below the support it is currently finding around $6,600.
Technical Indicators
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 196.54.
The projected lower bound is: 114.72.
The projected closing price is: 155.63.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 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 40.5494. This is not an overbought or oversold reading. The last signal was a sell 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 51.55. 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 26 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 24. This is not a topping or bottoming area. The last signal was a sell 4 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 buy 23 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed up 1.200 at 157.710. Volume was 63% below average (consolidating) and Bollinger Bands were 36% narrower than normal.
Open High Low Close Volume___
156.550 159.950 155.800 157.710 129,917
Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 160.47 166.23 172.01
Volatility: 109 164 102
Volume: 390,716 460,222 193,167
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 8.3% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into ETH= (mildly bullish). Our trend forecasting oscillators are currently bullish on ETH= and have had this outlook for the last 10 periods.
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