Ethereum has lost 14.15% in the last three trading sessions, the cryptocurrency currently trades at $2,474, and it continues getting closer to a strong resistance level at our 23.6% retracement.
Price trades below the short and long-term moving averages, indicating a downtrend. Our parabolic SAR indicator suggests an upward trend; however, this is a lagging indicator that we only use for support.
The relative strength index is currently at 43%, which allows us to believe that the pair will continue to fall in the short term. We have not seen Ethereum enter an oversold status in more than a year on a daily chart, and this means that traders are very reactive to the RSI level. Once the RSI gets to 30%, we can expect a price increase.
If the price falls below the resistance level on the downtrend and the RSI has not reached 30%, we could expect the price to sink all the way down to $2,186, a level where the pair found previous support.
The Bollinger bands closed significantly from previous sessions, indicating that volatility should be lower and that the downtrend is being consolidated.
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.
