ETH/USD traded lower yesterday, after it hit resistance at 4360, slightly below its record of 4365, hit on May 12th. That said, the slide was stopped near the 3996 zone, and then, the crypto rebounded somewhat. Despite yesterday’s retreat, Ethereum remains decently above the upside support line drawn from the low of September 29th. Therefore, we still see a positive short-term picture.
We believe that the bulls could take charge again soon and aim for another test at 4360, or even the record of 4365. However, if they are not willing to stop there and decide to enter the uncharted territory, their next stop may be at around 4870, a zone defined by the 161.8% Fibonacci extension level of the September 3rd – 21st decline.
Looking at our short-term oscillators, we see that the RSI, already above 50, has turned up again, but the MACD, although positive, lies below its trigger line. Both indicators detect positive momentum, but the fact that the MACD runs below its trigger line make us careful of another setback before the next positive leg.
The move that could signal a trend reversal in our view is a dip below 3890. This may confirm the break below the aforementioned upside line and may initially target the low of October 18th, at 3665. If the bears do not stop there, we could see them diving towards the low of October 13th, at 3400, the break of which may extend the fall towards the inside swing peak of September 23rd, at 3165.
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. 73.90% 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 2021 JFD Group Ltd.