technical analysis ETHUSD

Technical analysis of ETHUSD

Ether has continued its recovery today like various other coins amid generally positive sentiment: Elon Musk’s latest supportive tweet of Dogecoin appears to have increased participants’ confidence, while demand to push below the main psychological support seems to have evaporated for now. This technical analysis of ETHUSD looks at the daily chart.

High resistance on this chart seems to be the latest closing high around $4,175, but it’s unlikely for this area to be tested in the near future. Low support is around the key psychological area of $2,000.

Technical indicators on ETHUSD D1


Moving averages continue to give a buy signal, with each of the 50, 100 and 200 SMAs successively above slower lines. However, the price is now within the value area between the 50 and 100 SMAs. The 100 SMA is in view as the main support from moving averages above $2,000.

There is no sign of saturation from either Bollinger Bands (50, 0, 2) or the slow stochastic (15, 5, 5). The latter at about 41 is closer to neutral than oversold. Volume meanwhile is fairly closely balanced between buying and selling despite the surge in buying volume on 19 May as traders tried to ‘catch the knife’.

Price action and Fibonacci


Recent price action is consistent with volatile recovery, and the failure to reach a lower low after 24 May’s bounce is a positive signal. The response to 23 May’s test below $2,000 was extremely strong. Today’s engulfing candle would traditionally be taken as a strong buy signal in the context but, as ever for crypto, sentiment is critical.

The 50% weekly Fibonacci retracement area coincides quite neatly with the psychological area of $2,000, making this a very strong technical reference from which one might expect another bounce if tested again. Other less important areas include the 38.2% zones from both the weekly Fibo fan and the retracement.

Technical analysis of ETHUSD: summary


While it’s definitely not clear yet that this is a strategic reversal to the upside, overall the technical picture for Ether looks quite positive; one might reasonably expect the recovery to continue for now to the 23.6% Fibonacci retracement area. Conversely, sentiment rules in crypto markets: another sudden turn down might be driven by anything from a tweet by Mr Musk to negativity on bitcoin or evidence of a large participant selling.

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