Key Resistance levels: $220, $240, $260
Key Support Levels: $160, $140,$120
ETH/USD Long-term Trend: Ranging
Ethereum had been trading in a sideways trend since August. In August, the market fell to a low at $170 and continued its fluctuations. The coin is fluctuating between the levels of $160 and $200. Neither the bulls nor the bears have been able to break the range-bound levels. Presently, the bulls have been having an upper hand as the price made unsuccessful attempts to break the upper price range.
On October 9, the bulls made a close attempt at the upper price range but were resisted. The market dropped to a low of $160. The bulls came back to the resistance line to retest the $200 price level. However, if the bulls succeed in breaking the resistance line, ETH will reach a high of $220 price level. Nevertheless, if the resistance line and the support line remain unbroken, Ethereum will continue its fluctuations.
Daily Chart Indicators Reading:
The pair has broken the downtrend line which means that the coin is out of the bearish trend. The 21-day and the 50-day SMAs are trending horizontally meaning that the coin is in a range-bound movement. Ethereum will rise again if the resistance line is broken and the price is sustained above it. However, the price had a false breakout in September which resulted in the price bearish move.
ETH/USD Medium-term bias: Bullish
On the 4-hour chart, the market is fluctuating between the levels of $160 and $190. In the last three months, the Ethereum price level had been stable. A range-bound trader can trade the resistance line and the support line by placing pending orders. In the upper price range, you can place a sell limit. Similarly, at the support line, you can place a buy limit. Your buy limit should have a target of $190. While your sell limit should have a target if $160.
4-hour Chart Indicators Reading
Ethereum is above the centerline 50 of the Relative Strength Index level 53 which indicates that ETH tends to rise. The moving averages are fluctuating according to the price bars indicating a sideways move.
General Outlook for ETH
The ETH/USD pair will continue its sideways move until the resistance and support lines are broken. The pair will rise since the bulls have broken the downtrend line. The coin should have buying powers at the current market price level. The market has been relatively stable in the last three months.
ETH Trade Signal
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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.