Key Resistance levels: $220, $240, $260
Key Support Levels: $150, $130,$110
ETH/USD Long-term Trend: Bullish
Recently, Ethereum had a selling pressure as the bears broke the dashed line (blue lines) at $150 and the price fell to the low of $135. After the coin falls, the market pulled back but ETH is currently facing resistance at $155. In retrospect, after the last bearish impulse in September,
Ethereum had been in a range-bound movement between the levels of $150 and $200. The $150 price level had been strong support before it was broken in November. The support is now resistance in November. Ethereum is not likely to move up because of this resistance level. However, if the bulls fail to break the current resistance, the coin will face another selling.
Daily Chart Indicators Reading:
The recent price fall broke below the downtrend line but pulled back above it. This shows that the bulls are still in control of price but are presently facing resistance at $155. However, if the coin face another selling and the downtrend line and support line are broken, Ethereum will resume the downtrend move. The stochastic is showing signs of bullish momentum but the price is in the oversold region.
ETH/USD Medium-term bias: Bullish
In November, Ethereum was fluctuating between the levels $180 and $197 but the bulls fail to break the resistance at $197. The inability of the bulls led to the downward move. The market drops and breaks the previous low of $150 and created another low of $135. The market has moved up again but it is facing resistance at the current price level.
4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are trending southward indicating that the market is still bearish. The RSI period 14 level 51 indicates that the price is above the centerline 50. This indicates that the Ethereum is rising
General Outlook for ETH
The overall trend of Ethereum is bearish. The ETH is trading below the resistance at $155. Ethereum may further depreciate if the bulls fail to break the resistance at $155. This will result in the sliding down of the coin to the previous low. Alternatively, the coin will be fluctuating between the levels of $135 and $155.
ETH Trade Signal
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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.