Ethereum struggling to keep the momentum going
|- ETH/USD finds support ahead of 200.00 at the internal trendline
- Bulls target a break of 230.50 and may take the pair back to the highs
- The current consolidation range is between 190.10 and 230.50 on the 4-hour chart
Ethereum has pushed higher on Sunday to fend off the 200.00 level after producing a doji candle on Saturday. The doji candle has stopped right on the retest of the internal trendline just above the 200.00 area and yesterday the price significantly pushed to reach a high of 216.79.
Today, it has not been as straightforward with the price pulling back somewhat. Now, however, there is a battle between the 190.10 and 230.50 levels. A break of the 230.50 level to the upside would be a massive sign that we could to head back to the highs. The uptrend is technically still intact until the 190.10 wave low is taken out.
Looking at the indicators the stochastic looks like it may push higher as the K (Red/fast), and D (Blue/slow) line converge, and the MACD histogram is still holding above the mid-line, but the moving averages are still below and would need to break higher for the trend to continue.
The stochastic indicator is a momentum oscillator that is based on moving averages for 3 and 5 days. The extreme levels are seen as overbought and oversold, but it is dangerous to see them that way as they can stay low and high for some period of time, often giving false signals. The crossover of the two moving averages can also give signals, but I would always look for other arguments to support your views as trading with it alone could lead to losses.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.