ETHUSD: Bearish Engulfing Pattern Below $2,900
Ethereum failed to clear its resistance level of $3,200 last week and started moving into a bearish channel which continues today, pushing the price below the $2,500 handle in the European trading session.
Ethereum markets are witnessing a strong bearish phase with the investors selling their holdings in the wake of Russia attacking Ukraine.
We have seen that the safe haven status of the USD holds, which continues to push down the prices of ETHUSD in the medium-term scenario.
We can clearly see a bearish engulfing pattern below the $2,900 handle, which signifies the end of a bullish phase and the start of a bearish phase in the markets.
ETH is now trading just above its pivot level of $2,352 and is moving in a bearish channel. The price of ETHUSD is now testing its classic support level of $2,235 and Fibonacci resistance level of $2,320 after which the path towards $2,100 will get cleared.
The relative strength index is at 27 indicating a WEAKER demand for Ethereum and the continuation of selling pressure in the markets.
All of the technical indicators are giving a STRONG SELL market signal.
All of the moving averages are giving a STRONG SELL signal, and we are now looking at the levels of $2,200 to $2,100 in the short-term range.
ETH is now trading below both the 100 hourly and 200 hourly simple moving averages.
- A bearish reversal seen below the $2,900 mark
- The short-term range appears to be strongly BEARISH
- The daily RSI is below 50 at 32 indicating a BEARISH market
- The average true range is indicating LESS market volatility
ETHUSD is now moving into a strong bearish momentum with the prices trading below the $2,400 handle in the European trading session today.
Both the Williams percent range (daily) and StochRSI (daily) is indicating an OVERSOLD market, which means that a pullback in the level of Ethereum is expected soon.
We can see that the bearish trend line has extended, and now a move below $2,200 is expected in the short-term.
The prices of ETHUSD need to remain above the $2,100 handle for any bullish reversal in the markets.
At present, we are looking for immediate targets of $2,200 after which it is expected to enter into a consolidation and correction phase.
The key support level to watch is $2,100, and the key resistance level is $2,500 for this week.
ETH has declined -12.29% with a price change of -332.72$ in the past 24hrs, and has a trading volume of 20.564 billion USD.
We can see an increase of 36.99% in the total trading volume in the last 24 hrs due to the broad-based selling in the crypto markets globally.
The Week Ahead
Ethereum is now moving into a consolidating level above $2,200 which if completed will give the buyers a chance to pull back its level towards an important resistance zone located at $2,500.
The ongoing Russia-Ukraine war crisis is also affecting the global cryptocurrency markets including Ethereum because the investors are unwilling to hold Ethereum in view of the market liquidity crunch in Europe and Russia.
If the prices of ETHUSD continue to remain above the $2,000 handle as seen today, it will start the next leg of its bullish move towards $2,500 handle next week.
The immediate short-term outlook for Ether has turned strongly BEARISH; the medium-term outlook has turned NEUTRAL; and the long-term outlook for Ether is BULLISH towards the $3,000 handle.
This week, Ether is expected to move in a range between the $2,000 and $2,500, to trade at levels above $2,500 next week.
Technical Indicators:
The moving averages convergence divergence (12,26): at -71.42 indicating a SELL
The commodity channel index (14-day): at -82.77 indicating a SELL
The rate of price change: at -9.82 indicating a SELL
The Stoch (9,6): at 20.89 indicating a SELL
Read more...