Ethereum Trades in Trendless Mode
|ETH/USD traded lower on Wednesday and Thursday, after hitting resistance near the 192.00 hurdle, with the slide pausing at around 177.00, a barrier that acted as decent resistance on October 18th and 21st. Overall, the crypto appears to be trading in a trendless mode since September 24th, between 151.45 and 192.00 and thus, we would consider the near-term picture to be flat for now. However, given that the latest slide came after the price tested the upper end of that range, we would see decent chances for some further declines.
If the bears decide to take charge again soon and push Ethereum below 177.00, we could see them driving the battle towards the 167.25 zone, which provided strong support on October 7th and 18th. If that area is not able to stop them either, its break could allow more declines, perhaps towards 159.00, marked by an intraday low formed on October 24th.
Looking at our short-term oscillators, we see that the RSI drifted lower after hitting resistance slightly above 70, and has now slid below 50, while the MACD, although positive, lies below its trigger line and points south. It could obtain a negative sign soon. Both indicators suggest that the downside momentum may start picking up soon, which corroborates our view for further declines.
On the upside, we would like to see, not only a break above the range’s upper end of 192.00, but also a move above the psychological zone of 200.00, before we start examining whether the bulls have gained the driver’s seat. Such a move could initially open the path towards the 210.00 area, the break of which could encourage bullish extensions towards the 217.00 hurdle, which provided resistance on September 18th, and is also marked by an intraday high formed on the 20th of that month.
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