Technical Analysis – ETHUSD trades below SMAs with weak momentum
January 17, 2019 1:26 pm
ETHUSD is slowing down below the moving averages in the 4-hour chart, while according to the technical indicators the market seems to be neutral. The RSI keeps developing below 50 with weak momentum and the MACD oscillator is flattening above its trigger line but below the zero level.
In case of a move lower, the price could challenge the 23.6% Fibonacci retracement level of the negative movement from 221 to 80, around 113.10. This area could be difficult for the bears to overcome initially, but if there is a closing session below it, the price could hit the 106 obstacle. Below this level the price could lead towards the 19-month low of 80.
On the other side, in case of an upward movement, surpassing the moving averages there is a possibility of a re-test of the 129.35 resistance barrier. Slightly above this region the price could challenge the 38.2% Fibonacci of 133.75. Further upside pressure could drive the market until the 50.0% Fibonacci of 150.40, which overlaps with the latest highs, reached on January 9.
Overall, having a look at the bigger picture, if the 61.8% Fibonacci of 167 is penetrated, this could signal a major change to the direction in the near term. Otherwise, the price could continue moving downwards, confirming the bearish long-term structure.
ETHUSD is slowing down below the moving averages in the 4-hour chart, while according to the technical indicators the market seems to be neutral. The RSI keeps developing below 50 with weak momentum and the MACD oscillator is flattening above its trigger line but below the zero level.
In case of a move lower, the price could challenge the 23.6% Fibonacci retracement level of the negative movement from 221 to 80, around 113.10. This area could be difficult for the bears to overcome initially, but if there is a closing session below it, the price could hit the 106 obstacle. Below this level the price could lead towards the 19-month low of 80.
On the other side, in case of an upward movement, surpassing the moving averages there is a possibility of a re-test of the 129.35 resistance barrier. Slightly above this region the price could challenge the 38.2% Fibonacci of 133.75. Further upside pressure could drive the market until the 50.0% Fibonacci of 150.40, which overlaps with the latest highs, reached on January 9.
Overall, having a look at the bigger picture, if the 61.8% Fibonacci of 167 is penetrated, this could signal a major change to the direction in the near term. Otherwise, the price could continue moving downwards, confirming the bearish long-term structure.
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