- After the recent crash, Ethereum is trading under $240 and facing a few strong resistance levels.
- Not a lot of support either for the second-ranked cryptocurrency.
Ethereum suffered a significant crash yesterday on June 11 and plummeted to $225. Bulls managed to push ETH/USD back to $235 but were unable to break $240. They are now facing a resistance area before $240 which seems to be quite important.
The area between $235 and $236 is proving to be a tough bone to chew for Ethereum bulls. The daily Fibonacci 38.2%, the 4-hour SMA100, the previous 15-minute high, the previous low on the 4-hour chart, and the weekly Fibonacci 38.2% are all converging in the same area. A break above this area would indicate a strong bullish momentum up to $240.
Unfortunately, Ethereum doesn’t have a lot of support, and bulls need to hold $234.4 where the 4-hour SMA5 and the middle Bollinger Band on the hourly chart are converging. Below that level, Ethereum is very likely to experience a free fall down to $225 again.
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacent price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
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Not a lot of support either for the second-ranked cryptocurrency.