Ethereum (ETH) Deepens into the Oversold Region as Buyers Emerge

Ethereum (ETH) Deepens into the Oversold Region as Buyers Emerge

Key Resistance Levels: $225, $250, $275
Key Support Levels: $150, $125,$100

ETH/USD Long-term Trend: Bearish
Finally, Ethereum tumbles to the oversold region after months of a sideways trend. Ethereum has one of the longest sideways trends. A market that is good for position traders. Earlier on the coin had been range-bound for four months between the levels of $160 and $200. This can be seen by the dotted trend line. On November 22, the bears breached the $160 support line.

The coin fell to the $140 support level and moved up to retest the $160 resistance level. This retest confirmed the resumption of the downtrend. Ethereum reached a low of $120 after the low of $140 was broken. The coin is still fluctuating above the $120, but the bears are still in control of price. A break below $120 will deepen into an oversold region.

ETH/USD - Daily Chart

Daily Chart Indicators Reading:
Ethereum is now in a bullish momentum as the coin trades above the 20% range of the daily stochastic. The pair is in a bearish crossover as the 12-day EMA acts as a resistance level.

ETH/USD Medium-term bias: Bearish
On the 4-hour chart, Ethereum had a bearish impulse that reached a low of $137 on November 25. The price made an upward correction and retested the $157 price level. ETH retraced to a low of $145 support. The coin moved up again and retested the $152 resistance. Today, ETH has fallen to the oversold region as buyers come up and defend the $120 support level. The coin is fluctuating above the $120 support level.

ETH/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The coin is now in a descending channel, the price tests the resistance and support lines. A break below the support line will depreciate the coin to a low of $110. Conversely, a break above the resistance line will push ETH to the high of $180.

General Outlook for ETH
Ethereum is in a downtrend. Ethereum is fluctuating above the $120 support level. The coin has rebounded but was resisted at the $133 price level. Nevertheless, a break above the first resistance will catapult ETH to a high of $152. Meanwhile, if the support cracks, Ethereum will deepen into the oversold region.

ETH Trade Signal
Instrument: ETH/USD
Order: Buy Limit
Entry price: $110
Stop: $90
Target: $180

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.