Ethereum: USD/ETH (ETH=) Expect Further Downwards Momentum

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Ethereum
Ticker: ETH=
Price: $339.47

Ethereum Outlook

Ethereum was pushing higher from last week’s lows, at least until the past few hours. In the span of about 30 minutes earlier today, the leading cryptocurrency dropped from $355 or so to $344, marking a small yet notable drop.

This weakness and continued inability to surmount the resistances at $365-375 in the near term is sparking fears of a deeper drop.

Unless Ethereum reclaims $360 in the near future, it is not in bullish short-term standing. The cryptocurrency could drop as low as $280 in the coming weeks.

Despite this weakness in ETH’s price, social media trends purportedly indicate that now is a good buying opportunity.

Technical Indicators

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 351.28.

The projected upper bound is: 394.99.

The projected lower bound is: 281.42.

The projected closing price is: 338.21.

Candlesticks

A black body occurred (because prices closed lower 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 25 white candles and 25 black 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 25.3930. This is not an overbought or oversold reading. The last signal was a sell 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 43.08. 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 51 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 -122.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 13 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 2 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -1.080 at 339.500. Volume was 94% below average (consolidating) and Bollinger Bands were 51% narrower than normal.

Open     High     Low      Close      Volume
341.230  342.870  338.240  339.500    37,131

Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bullish

Moving Averages: 10-period      50-period      200-period
Close:           347.73         371.51         270.19
Volatility:      29             93             80
Volume:          317,247        519,186        452,350

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 25.7% above its 200-period moving average and is in an downward 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 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 44 periods.