Technical Analysis – Ethereum hovers above key support levels
- Mixed movements in cryptocurrencies this week
- Ethereum is under pressure, trading a tad above 2,507
- Momentum indicators are currently directionless
Ethereum is having a bad week, significantly underperforming against bitcoin. It is currently trading a tad above the 61.8% Fibonacci retracement level of the October 13, 2023 – March 12, 2024 uptrend of 2,507, inside the developing symmetrical triangle. At least, it managed to record a higher high on October 21 and, provided that the next trough is above 2,300, the current short-term bullish trend that commenced in early September could remain alive.
In the meantime, the momentum indicators are mostly directionless. The RSI is hovering around its midpoint, potentially preparing for the next leg in ethereum. Interestingly, the stochastic oscillator has stopped its downward movement, and it is trading a tad below its midpoint. Should it restart its downleg, this week’s bearish pressure in ethereum could get a boost.
Should the bulls remain confident, they would try to keep ethereum above the 61.8% Fibonacci retracement level of 2,507, and gradually push it higher towards the mid-September 2021 low of 2,667. Another breakout from the triangle pattern could then be on the cards, although a decisive rally, potentially above the 50% Fibonacci retracement level at 2,810, could be needed to validate the move.
On the other hand, the bears are still thirsty. Three important support levels - the 61.8% Fibonacci retracement level, 50-day simple moving average (SMA) and the lower trendline of the triangle pattern at 2,507, 2,486 and 2,440 respectively - stand in their way. Should they manage to break below these levels, the path could be then clear until the 2,159 low.
To conclude, ethereum remains on the back foot, and a move below certain key support levels could result in a protracted selloff.
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
