After being in an uptrend for two days, the cryptocurrency lost 3.71% in today's session. Ethereum has not been able to break the support level at $2,742.54 on the downtrend, and it has found this support three times in the last five sessions suggesting that this is a crucial level for the future of the cryptocurrency.
The relative strength index is at 46%. It has been steady in the last few trading sessions, not a lot of action for Ethereum lately. This RSI level is very vanilla as the price could start to move freely, either climbing or falling since it's far from an overbought or oversold status.
Bollinger bands are very wide; however, the top band is closing, indicating that the downtrend could continue. The price has been moving sideways, which suggests that the markets are uncertain. Another indication of market uncertainty is that the price trades inside the Ichimoku cloud.
Our Parabolic SAR indicator suggests an uptrend; remember that this is a lagging indicator. The short and long-term moving averages crossed three sessions ago, meaning that the downtrend could continue for the medium term. If this is the case, the pair could come down to the $2,355 levels at our 23.6% Fibonacci Retracement, and then we would have to wait and see if it can break that resistance to continue plunging.
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.
