The cryptocurrency managed to fall below the $3,157.5 price level and broke the support on our 50% Fibonacci retracement, why is this important?, well usually, when the price of an asset breaks the 50% retracement, it means that we can expect a trend reversal, after much struggle, Ethereum was finally able to start an uptrend in mid-March, and that could come to an end after only 17 days after it entered a general uptrend unless the price is able to bounce back.
The Bollinger bands are wide and they are starting to open up more at the edges, we would expect higher volatility in the upcoming trading sessions. The pair trades very close to the lower band, suggesting that the price is relatively low, which could incentivize traders to open long positions at a better price, if the lower band is able to provide enough support then the pair is likely to get back on track and resume the uptrend it chased for so long.
The relative strength index is at 41% which will allow the price to recover the lost ground without worrying about entering an overbought status in the short term, but it also means that there is still room for the pair to sink before an uptrend can resume. Our parabolic SAR indicator suggests that the price is likely to continue moving down.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.