Ethereum: USD/ETH (ETH=) tests $145 level following 15% upswing

Ethereum, the world’s second-largest cryptocurrency by market cap, has tested the $145 level of resistance following a 15% rally over the past five days.

The move to the upside hasn’t been limited to Ethereum either, with Bitcoin and a number of top cryptocurrencies all experiencing significant gains since the turn of the year.

Following a test of the $145 level, Ethereum has suffered a minor correction, falling by 3% to $141 before forming a new level of support.

A breakout from here will likely trigger a move towards $160, with a key level to the upside remaining at $219.

The exponential moving average (EMA) death cross on the daily chart came to fruition on August 23, with the cross forming adjacent to $219.

If the price of Ethereum gets rejected at $145, levels of support remain at $133, $128, and $122, while the psychological level of $100 is also worth keeping an eye on.

Ethereum as a project has endured a turbulent past three years, with the cryptocurrency space falling head over heels for Vitalik Buterin’s smart contracts platform during its run to $1,420 in 2017.

However, as price began to dwindle, so did support for the project, which was made worse by its numerous vulnerabilities including the lack of scaling solutions and failed hard forks.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 157.37.

The projected lower bound is: 131.37.

The projected closing price is: 144.37.

Candlesticks



A white body occurred (because prices closed higher than they opened).

During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators



Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 86.2621. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 34 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 60.57. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 21 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 175.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.

Rex Takasugi – TD Profile



FOREX ETH= closed up 2.540 at 144.960. Volume was 57% below average (consolidating) and Bollinger Bands were 29% narrower than normal.

Open High Low Close Volume___

142.410 147.940 141.230 144.960 24,540

Technical Outlook

Short Term: Overbought

Intermediate Term: Bullish

Long Term: Bearish

Moving Averages: 10-period 50-period 200-period

Close: 135.04 140.65 189.60

Volatility: 48 58 76

Volume: 65,580 64,535 65,463

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX ETH= is currently 23.5% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of ETH= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on ETH= and have had this outlook for the last 2 periods.