Ethereum (ETH) Uptrend May Continue Despite Recent Retracement

Ethereum (ETH) Uptrend May Continue Despite Recent Retracement

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

ETH/USD Long-term Trend: Bullish
In its bullish run, Ethereum reached a high of $290 on February 14. Before this time, the bulls have to battle with knotty price level at the resistance at $175, $225 and the current resistance at $290. At the moment, Ether is in a downward move after testing the overhead resistance.

The coin fell to the low of $240 and it is fluctuating above the current support. On the upside, if the $240 support holds, the bulls will retest the $290 resistance or rally above $320 price level. Meanwhile, the bearish candlesticks are facing price rejection above the $240 support level.

ETH/USD – Daily Chart

Daily Chart Indicators Reading:
Since on January 30, Ether has been trading in the overbought region of the daily stochastic. The coin was in a strong bullish momentum as it rises to a high of $290. Now the stochastic bands are making U-turn pointing below the 80% range. This indicates that ETH is in bearish momentum. The 21-day SMA and 50-day SMA are still pointing upward.

ETH/USD Medium-term bias: Bullish
On the 4 hour chart, Ethereum traded and reached a high of $290. ETH fell to the support of 50-day SMA and pulled back. The selling pressure has been temporarily exhausted as the market moves up.

ETH/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The price fell to the support of the trend line and rebounded. The Relative Strength Index period 14 is level 47. ETH is still below the centerline 50 which indicates that the coin is in the downtrend zone.

General Outlook for ETH
Ethereum has resumed its upward as the coin rebound above the trend line. We expect the bulls to break the current resistance and continue the upward move. However, if the bulls turn around break the bullish trend, selling pressure will resume. Then ETH will drop to the low $220.

ETH Trade Signal
Instrument: ETHUSD
Order: Buy
Entry price: $260
Stop: $200
Target: $325

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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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.