Is More Downside in the Works for Ethereum?

After completing a “Head and Shoulders” formation on February 25th, Ethereum slid and on the 27th of the month, it hit support slightly below 214.00, a level marked by the low of February 11th. Then, it rebounded, but the recovery stayed limited near the 237.00 zone, slightly below the downside resistance line taken from the peak of February 24th. The fact that the price continues to trade below that line, as well as below the neckline of the H&S, suggests that the short-term outlook is negative.

At the time of writing, the crypto is trading slightly above the 214.00 zone. If the bears are willing to overcome that zone this time around, they may decide to push for the 194.00 territory, defined as a support by the inside swing peak of February 3rd. They may decide to take a break after hitting that hurdle, thereby allowing a small recovery. However, as long as such a potential recovery stays limited below the pre-mentioned downside line, we would see decent chances for the bears to take charge again and perhaps drive the battle below the 194.00 area. Such a dip may pave the way towards the 184.00 barrier, or the low of January 31st, at around 174.00.

Our short-term oscillators detect negative momentum and support the notion for some further near-term declines. The RSI, already below 50, has turned down again, while the MACD, even though above its trigger line, lies within its negative territory and shows signs that it could turn south as well.

In order to abandon the bearish case, we would like to see a strong move above the 255.00 zone. This way, the crypto will be, not only above the short-term downside line, but also above the H&S’s neckline. The bulls may then get encouraged to target the high of the right shoulder, at around 278.00, the break of which may lead to the peak of the head, at around 286.00. That said, in order to start examining whether the prior uptrend is back in force, we would like to see a decisive close above 286.00, as such a move would confirm a forthcoming higher high on the daily chart.

ETHUSD - One-stop Multi-asset Experience for Trading and Investment Services



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. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group 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 Group prohibits the duplication or publication without explicit approval.

83% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure:

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

XRP drops below $0.3000, ETH at risk of an extended correction

BTC/USD hit the intraday low at $11,086 during early Asian hours and recovered to $11,226 by press time. The first digital coin has stayed mostly unchanged on a day-to-day basis and since the beginning of the day, moving within a short-term bullish trend amid shrinking volatility.

More Bitcoin News

XRP/USD under $0.3000 after Ripple announces the investment in XRPL Lab

Ripple's XRP dropped below $0.30 after a failed attempt to settle above $0.3200 during early Asian hours. The coin has lost over 4% in the recent 24 hours and stayed mostly unchanged since the beginning of the day. 

More Ripple News

Leading blockchain auditing firm predicts Cardano will outperform Tezos

ADA/USD bulls remained in control for the third straight day and the price is consolidating in a pennant formation. It’s current priced at $0.1443. The Elliott Oscillator has had seven straight red sessions.

More Cardano News

Altcoin Market Update: ETC and XLM face continual bearish correction

ETC/USD bears stayed in control for the fourth straight day. ETC/USD is currently priced at $7.13. The sellers are looking to get the price below the $7-level.The RSI is trending horizontally around 59.46.

More Cryptocurrencies News


Bitcoin Weekly Forecast: Fasten your seatbelts, next stop is $12,000

Bitcoin has had its best week since mid-2019. The first digital currency gained over 18% in a single week and hit the new highest level of 2020. At the time of writing, BTC/USD is changing hands at $11,358 and the upside momentum is gaining traction as Bitcoin bulls are pushing at the upper line of the weekly Bollinger Band. 

Read the weekly forecast