Ethereum – Updated Price Analysis and Chart
– The cryptocurrency space remains heavy with tokens struggling to make any upside in a low volume market.
– ETH may retest the $360-$400 zone if the current bearish sentiment continues.
IG Client Sentimentshows retail clients are 92.2% net-long of ETH but recent positional changes give us a mixed trading bias.
Ethereum (ETH) Continues to Fall Towards Support
The downtrend started from the May 6 swing-high at $834 continues to hold sway with the two breaks above the line in mid-June quickly reversed. Recent candle formations show that large trading ranges are predominantly seen on negative days (red candles) while any positive days (green candles) produce limited price action. The downtrend is confirmed by lower highs and lower lows as rebounds are sold off, while the RSI indicator continues to edge lower.
Ethereum has a support near between $360 and $400, a zone that broke the heavy sell-off that started in mid-January and produced a sizeable rebound. This zone needs to hold if ETH is to reverse the recent bearish move and turn around.
In mid-June the SEC declared that Ethereum is not a security, removing a regulatory hurdle for the token, yet after a shallow rebound the downtrend took control again.
On the upside, and if Ethereum can convincingly break and close above the downtrend, the token will likely find resistance at $497 and the 20-day moving average at $506.
Ethereum Daily Price Chart (November 2017 – June 28, 2018)
Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ripple (XRP or Litecoin (LTC) we can offer you a wide range of free resources to help you. We have an Introduction to Bitcoin Trading Guide along with a Free Demo Account. In addition we run a Weekly Bitcoin Webinar to help you keep in touch with the market and make more informed trading decisions.
What’s your opinion on Ethereum? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at firstname.lastname@example.org.
— Written by Nick Cawley, Analyst.