ETH / USD Price Analysis: Losing Charge

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• Ethereum has a bearish short-term bias, with the ETH / USD pair now trading below its 200-period moving average
• Ethereum retains a bullish medium-term bias, with price still holding above its 200-day moving average
• The daily time frame continues to show a bullish inverted head and shoulders pattern with a target of $230.00

ETH / USD Short-term price analysis

Ethereum has a bearish short-term trading bias, with the cryptocurrency now trading below its 200-period moving average on the four-hour time frame.

The four-hour time frame shows that a bearish head and shoulders pattern has taken shape, with the ETH / USD pair now testing towards the neckline of the pattern.

Technical indicators are bearish on the four-hour time frame and continue to generate sell signals.

ETH

Pattern Watch

Traders should note that the downside target of the bearish head and shoulders pattern on the four-hour time frame extends towards the $125.00 level.

Relative Strength Index

The RSI indicator on the four-hour time frame has turned bearish, although it is attempting to correct from oversold territory.

MACD Indicator

The MACD indicator on the four-hour time frame has turned bearish and continues to issue a sell signal.

ETH / USD Medium-term price analysis

Ethereum retains a bullish medium-term trading bias, with the ETH / USD pair still trading above its trend defining 200-day moving average.

The daily time frame is still showing a valid inverted head and shoulders pattern, although the ETH / USD pair has now fallen below the neckline of the bullish pattern.

Technical indicators on the daily time frame have turned bearish and have scope to correct even lower.

ETH

Pattern Watch

Traders should note that the inverted head and shoulders pattern on the daily time frame has yet to reach its overall upside target of $230.00.

Relative Strength Indicator

The RSI Indicator on the daily time frame has turned bearish and shows scope for further downside.

MACD Indicator

The MACD indicator on the daily time frame is bearish, with both the MACD histogram and the MACD signal line issuing sell signals.

Conclusion

Ethereum is staging a strong short-term technical correction with the bearish head and shoulders pattern on the four-hour time frame suggesting that the ETH / USD could trade even lower.

Ethereum still has the potential to trade higher over the medium-term if the inverted head and shoulders pattern on the daily time frame remains valid.

Check out our Ethereum coin guide here.

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