ETHUSD and LTCUSD Technical Analysis – 21st JULY, 2022
ETHUSD: Hanging Man Pattern Below $1627
Ethereum was unable to sustain its bullish momentum and after touching a high of 1627 on 19th July started to decline against the US dollar coming down below the $1500 handle in the European trading session today.
We can see that ETH is losing ground against the US dollar and no major uptrend formation was seen.
The prices touched an intraday low of $1466 and an intraday high of $1565 in the Asian trading session today.
We can clearly see a hanging man pattern below the $1627 handle which is a bearish pattern and 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 levels of 1485 and moving into a mildly bearish channel. The price of ETHUSD is now testing its classic support level of 1450 and Fibonacci support level of 1476 after which the path towards 1300 will get cleared.
The relative strength index is at 39 indicating a weak market and the continuation of the downtrend in the markets.
We can see the progression of a bearish trendline formation from $1627 to $1488 which indicates that we are heading towards $1436.
Both the commodity channel index and Williams percent range are indicating a neutral market.
All of the technical indicators are giving a strong sell market signal.
Most of the moving averages are giving a sell signal, and we are now looking at the levels of $1400 to $1350 in the short-term range.
ETH is now trading above both its 100 hourly simple and exponential moving averages.
- Ether: bearish reversal seen below the $1627 mark
- Short-term range appears to be mildly bearish
- ETH continues to remain above $1400
- The average true range is indicating less market volatility
Ether: Bearish Reversal Seen Below $1627
ETHUSD is now moving into a mildly bearish channel with the prices trading below the $1500 handle in the European trading session today.
We have also detected the formation of MA20 and MA50 crossover patterns located at 1529 and 1545 in the hourly time frame indicating that the price is likely to descend below.
We can see that the prices of Ethereum are slowly preparing for moving into a consolidation channel above the $1400 handle.
We can also see the formation of three black crows patterns in the 15-minute time frame indicating the bearish nature of the markets.
In the 2-hour time frame, the super trend indicator is giving bearish reversal signals.
The key support levels to watch are $1385 and $1335, and the prices of ETHUSD need to remain above these levels for any potential bullish reversal in the markets.
ETH has decreased by 2.79% with a price change of 42$ in the past 24hrs and has a trading volume of 23.086 billion USD.
We can see an increase of 2.31% in the total trading volume in the last 24 hrs. which appears to be normal.
The Week Ahead
We can see that ETH failed to clear the resistance zone located at $1650, and with the continued bearish reversal, we are now heading towards the $1400 level.
The prices of Ethereum are preparing to enter into a consolidation phase below the $1500 level and we can see some range-bounded movements between the $1400 and $1500 levels this week.
The immediate short-term outlook for Ether has turned mildly bearish; the medium-term outlook has turned neutral; and the long-term outlook for Ether is neutral in present market conditions.
The price of ETHUSD will need to remain above the important support level of $1400 this week.
The weekly outlook is projected at $1550 with a consolidation zone of $1400.
Technical Indicators:
STOCH (9,6): at 22.50 indicating a sell
The moving averages convergence divergence (12,26): at -17.75 indicating a sell
The rate of price change: at -3.93 indicating a sell
The ultimate oscillator: at 46.50 indicating a sell
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