Ethereum Price Analysis: ETH/USD massive bounce surges 18% to $130

By March 12, 2020 Ethereum
Click here to view original web page at www.fxstreet.com
  • Ethereum price makes a spectacular pullback after sinking under the $100 level on Friday.
  • The RSI clearly shows that the bulls’ exodus has stopped and Ethereum is gearing up for an upward roll towards $200.

Volatility remains extremely high in the cryptocurrency market. For instance, Ethereum price has on Friday tanked to $89.64 (intraday low) after commencing the session at $109.62. At the same time, an intraday high has been reached at $146.62 but the price has adjusted to $128 at the time of writing. In spite of the bullish reversal, the prevailing trend remains bearish which means that Ethereum gravitation is far from over.

The devastating breakdown forced ETH/USD below key descending channel support. Other expected support areas including $150, $120 and $100 were shattered into pieces as bears showcased their prowess. Critical ascending trendline support tried but failed to stop the decline. Moreover, its shattering could have added gasoline to the already lit bearish ‘fire.’

Technically, Ethereum is in the hands of the bears. Looking at the MACD, the path of the least hurdles is downwards. The indicator is jammed in the negative territory. An amplified bearish divergence speaks of the strong seller influence on the price. The situation is unlikely to change in the near term, however, support above $120 is a good point to start in the mission to pull ETH/USD above $200.

On the other hand, the RSI shows that bulls are making a noticeable effort considering that the price dived to $89.64 during the Asian hours. The oversold conditions suggest that bearish exhaustion has kicked in. Recovery above 30 followed by a continued movement towards the average (50) would stir up more bullish action.

ETH/USD daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

The RSI clearly shows that the bulls’ exodus has stopped and Ethereum is gearing […]

Leave a Reply