Taking a quick look at the Ethereum price action against Bitcoin and the US Dollar, lets take a look at ETHUSD.
Ethereum was hit hard when Bitcoin, and most of the other Cryptocurrency markets got a little bit rekt this past weekend. Even though we saw some very good price action at $420, Eth still consolidated below $500, confirming the current longer term bearish trend, once again.
Today should be quite interesting as we can see the 4hr candle chart is giving some bullish signals for the higher risk traders. Like I mentioned in other reports, when buying into a longer term bearish trend, trades should be considered higher risk, set up your trading rules, and money management accordingly.
Traders looking for the safer entry should practice patience, and wait for the eventual breakout to occur, and only enter when the momentum has been confirmed.
Support on the shorter term is between $400 – $420, and we could expect even lower prices in the future should the bulls fail to defend this zone. Resistance is around $470 – $520, look towards this zone for a possible breakout in the next few days.
Ethereum’s performance is still very much limited by the movements in the Bitcoin market, as we saw again this weekend, lets take a look at the ETH price action against BTC.
When we take a look at Ethereum’s performance on the ETHBTC chart, we can see why the price action was so weak against the US Dollar. Eth has been in a strong uptrend against Btc since the start of the year and this little bullish run looks like it could be about to end.
We can see that the price has struggled to stay above the MA 23, and this is showing us the short term resistance zone clearly at around 0.0776 btc – 0.078 btc.
Support on the near term is currently around 0.072 btc and I would expect 0.07 btc to get tested quite swiftly if these fail. Should 0.07 fail I will wait for even lower lows against BTC.
There is a lot of bullish fundamental news coming out for the Ethereum network, contradicted by a bearish situation with many “less than impressive” tokens getting dumped on the markets.
With all that said, healthy market action and very necessary for a free market. Safe trades