After hitting the 252.50 barrier on June 2nd, Ethereum (ETH/USD) started moving lower and today the it broke below its short-term upside support line taken from the low of March 13th, which can be seen as a bearish indication. That said, the price continues to balance above its key support area, at 216.00, which acted as a good resistance on May 8th and 18th. We would like to see a strong move below that area, in order to get more comfortable with further declines. Until then, we will take a somewhat bearish approach in the near term.
A drop below the previously-mentioned 216.00 hurdle would confirm a forthcoming lower low and may attract a few extra sellers into the game. The crypto might then slide to the 207.00 obstacle, which marks the inside swing high of May 27th, where the price could receive a temporary hold-up. ETH/USD could even rebound a bit higher, however, if it still remains below the 216.00 barrier, we might see another round of selling. If this time the 207.00 hurdle fails to provide support and breaks, the next potential target might be near the 190.00 level, marked by the low of May 21st.
Looking at the RSI and the MACD on our daily chart, we can notice that both are still pointing lower. In addition to that, the RSI has moved slightly below 50 and the MACD, although above zero, is now running below its trigger line. It seems both indicators are suggesting that the price might be losing the upside momentum, which may support our main scenario further.
Alternatively, if the price reverses and manages to climb back above the 233.00 barrier, marked by the inside swing low of June 9th, such a move may invite more bulls into the game, this way helping to lift the price even further. Ethereum could then travel to the 252.50 obstacle, marked by the current highest point of June, a break of which would confirm a forthcoming higher high. ETH/USD might then continue rising, possibly aiming for the high of February 24th, at 277.00.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.