In the short-term, Ethereum is bearish and currently going through a period of price consolidation towards the worst trading levels of the year so far.
Ethereum is also trading below the neckline of a sizeable head and shoulders pattern on the four-hour time frame, although a strong bearish break has yet to occur. A further bearish development has occurred, with the ETH / USD pair now trading below a key trendline.
Buyers will find encouragement that the pair’s 2018 trading low has yet to be breached, although the pair is far from bullish at present.
The large head and shoulders pattern on the four-hour time frame is the key pattern to watch, a smaller head and shoulders is also taking shape.
The MACD indicator on the four-hour time frame is currently providing no clear trading signal.
The RSI indicator is currently testing the neutral line, an inverse head and shoulders pattern is also present on the indicator.
Ethereum is bearish in the medium-term and is also showing a fairly large head and shoulders pattern on the daily time frame, with a downside projection of over $40.00.
The third largest cryptocurrency is yet another cryptocurrency that is at a crossroads, with the pair either crashing to new multi-year lows or recovering back above the $160.00.
Weakened trading volumes are currently confining the ETH / USD pair to tight ranges, although it is worth remembering that Ethereum is still on the verge of another steep move lower if the $100.00 support is broken with conviction.
Aside from the head and shoulders pattern on the daily time frame, traders should be cautious of a potential bullish double-bottom pattern forming.
The MACD indicator on the daily time frame is currently neutral and generating no trading signals.
The Relative Strength Indicator on the mentioned time frame is also flat and highlights the ETH / USD pair’s current tight range bound trading environment.
Ethereum is bearish in the short and medium-term, although warning signs are starting to emerge that the protracted decline in the pair is losing momentum.
Traders need to carefully watch trendline resistance on the four-hour time frame for bullish development and a sustained loss of the $100.00 support level for further declines towards the pair’s 2018 trading low.
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A sustained break below the $100.00 level should accelerate technical selling
Medium-term outlook for […]
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