Aeternity / USD Technical Analysis: Not Enough Pull
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- Aeternity is bullish in the short-term, with the recent rally in the cryptocurrency invalidating a head and shoulders pattern
- Bulls must now rally the AE / USD pair above its current yearly high to negate a potential triple-top pattern formation
- The medium-term outlook for Aeternity remains bearish, with price still trading well below the cryptocurrency’s 200-day moving average
Aeternity / USD Short-term price analysis
Aeternity is bullish in the short-term after the recent rally in the cryptocurrency invalidated a large head and shoulders pattern on the four-hour time frame.
Following a swift reversal from a fresh five-week trading high, the AE / USD pair is attempting to recover bullish trading momentum. Technical indicators on the four-hour time frame are also bullish, with buyers needing to rally the cryptocurrency above the current monthly high to encourage strong technical buying.
The overall short-term bullish bias will remain intact while price trades above the 200-period moving average on the four-hour time frame.
AE / USD H4 Chart (Source: TradingView)
Pattern Watch
Some caution is still advised over the short-term as a bearish triple-top pattern formation is currently in place across the four-hour time frame.
MACD Indicator
The MACD indicator on the mentioned time frame is currently bullish, with a bullish MACD line crossover underway.
Relative Strength Indicator
The Relative Strength Index indicator is bullish on the four-hour time frame and has yet to move into overbought territory.
Aeternity / USD Medium-term price analysis
Aeternity remains bearish over the medium-term horizon, with the AE / USD pair still trading at depressed levels and well below its key 200-day moving average.
The bearish head and shoulders pattern on the daily time frame has now been invalidated, although buyers failed to maintain bullish traction, with Aeternity slipping back into a lower trading range.
Bulls will need to hold price above the cryptocurrency’s former yearly trading high in order to push the AE / USD pair into a much higher trading range.
Aeternity’s 200-day moving average is currently offering dual resistance on the daily time frame alongside the neckline of a bearish head and shoulders pattern.
AE / USD Daily Chart (Source: TradingView)
Pattern Watch
Daily price closes above the head of the former head and shoulders pattern should be watch closely, as it will likely prompt the next bullish phase for the cryptocurrency.
MACD Indicator
The MACD indicator on the daily time frame is slightly bullish, although it is lacking a strong bullish signal.
RSI Indicator
The Relative Strength Index is bullish on the daily time frame, although warning signs are starting to emerge that the indicator may have recently made an important top.
Conclusion
Aeternity is bullish in the short-term, with buyers now needing to reignite the cryptocurrency above the best levels of the year so far. Some caution is advised if buyers fail to mount a sustainable rally, as a bearish triple top pattern formation is currently in place.
Given the protracted downtrend in the AE / USD pair, only a sustained move above its 200-day moving average will shift the strong bearish bias surrounding the cryptocurrency.
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