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Monday, April 3, 2023

Ether: struggle continues

Ether: struggle continues

Ethereum / U.S. dollar BITSTAMP:ETHUSD

Expected slowdown on the crypto market continued for a second week in a row. The fear from further banking contingencies have slowed down, bringing back at least modest optimism on financial markets. ETH spent a week trying to sustain a $1.8K level, ending the week modestly above this target. Weekly price range was between levels $1.690 up to $1.840.

It is interesting to see in technical indicators that RSI did not manage to reach the clear overbought side, despite the continuous strong push of ETH to the upside. Instead, the indicator was holding above level of 50, ending the week around the 60 mark. At the same time, MA50 continues to diverge from its MA200 counterpart, still supporting the Golden cross, which occurred a few weeks ago. Most of the previous week, buying orders were prevailing on the ETH market, however, each and every day during the week daily trading volumes were lower. Market is slowing down, in expectation of new fundamentals which would impact the next move. Technical indicators are pointing to a sort of short term pivoting point, where the market exhaustion will turn the price of ETH to modest reversal.

Second week in a row, ETH was trying to test the $1.850 resistance line, but with very weak market support for this level. The market is currently entering an exhaustion phase, when it can expect a short reversal for one more time. Certainly, it should be taken into consideration the currently insecure market environment, where incremental news can increase market uncertainty and push the prices to one side. At this moment, charts are pointing to a pivotal point for ETH, where the price might revert to the down side, at least to test $1.7K short term support line, with currently decreased probability that the price might move below this level.

from TradingView Ideas

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