Ethereum Testing Near-Term Support As Bearish Sentiment Continues

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Written By: Eno Eteng (MSTA)
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    Summary:
  • Ethereum enters day 4 of its selloff, with ETHUSD now testing the lower barrier of its consolidation range, with potential for further downside.

Ethereum is trading lower on the day as bearish pressure continues among the major cryptocurrency pairs today. ETHUSD is presently trading at 169.40, which is very close to testing the near-term support price of 168.62.

ETHUSD is now in its 4th consecutive day of weakness, and is exhibiting intense selling pressure on the day, as it looks set to end its consolidation in favour of continued downside. Other technical indicators such as the RSI are all below the midline point and rapidly heading into the lower market extreme area.

I expect 152.96 to be the next near-term target if selling pressure is enough to cause a decisive breakdown of the 168.62 support level (lows of April 25, September 24 and October 23). The evidence of this breakdown must be a 3% penetration candle close below support on the weekly chart or two successive candle closes below this area on the daily chart.

On the flip side, a bounce from support targets the upper end of the range at 194.00 (highs of Oct 30 and November 5).

A lift above this level would be required for price to target 204.85. However, this view will only be actualized if there is significant shift in the trading sentiment currently at work in the cryptocurrency market.

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.

Published by
Written By: Eno Eteng (MSTA)