ETH USD Price Analysis: $111.00 Concerns Subdued Traders
Share this article
- Ethereum price expected to remain subdued below $126.00 level
- The $111.00 level is the major technical support area to watch
- Bearish head and shoulders pattern is weighing over the ETHUSD pair across various time frames
ETHUSD Short-term price analysis
In the short-term, the ETHUSD pair is likely to remain bearish while trading below the $126.00 level, which is a former key swing-high formed on the recent rally towards $160.00. The recent move towards the $160.00 level is now in danger of being a corrective rally from extreme oversold trading conditions, rather than the start of a meaningful trend.
The $111.00 support area is the key area to watch for further losses in the ETHUSD pair, as it represents dual support from a key trendline and also the neckline of a large head and shoulders pattern with a $50.00 downside projection.
A break below this key area and the ETHUSD pair will likely test towards at least the $80.00 level, with the actual bearish pattern suggesting a downward move could take place towards the $60.00 benchmark.
The four-hour time frame best illustrates the bearish head and shoulders pattern and how price is trading dangerously close to the key $111.00 area, alongside dual trendline support.
Key short-term Levels
111.00 support – 126.00 resistance
106.00 support – 132.00 resistance
98.00 support – 150.00 resistance
The MACD indicator on the four-hour time frame is trending lower, however the recent decline has yet to spark a definitive move lower on the MACD. Traders maybe waiting for a key technical break to the downside and MACD line crossover before definitively shorting the ETHUSD pair.
ETHUSD Medium-term price analysis
In the medium-term the ETHUSD pair is bearish while trading below the $147.50 level, as the $147.50 level represents the ETHUSD pairs 100-day moving average, and also sits close to psychologically important $150.00 level.
Price has been steadily declining since the ETHUSD pair met heavy technically selling just before the $160.00 level earlier this month. The large decline in the ETHUSD pair on January 10th was the highest volume seen for Ethereum this year on the daily time frame.
A definitive break of the $111.00 to $147.00 range is likely needed before we see a strong return of trading volume and a return of large-scale speculative participation in the ETHUSD pair.
As is apparent with Bitcoin, Ethereum is now trading at a critical juncture, where price can either recover to fresh 2019 trading highs from current levels, or crash to fresh multi-year lows.
The daily chart highlights the head and shoulders pattern formation, however, caution is still advised, as price is still making bullish higher highs.
Confirmation is now needed for the bearish head and shoulder patterns neckline to break occur and price to make new monthly lower lows.
Moving Average + Volume
Price is deviating from it’s trading range between the 50-day and 100-day moving averages, as the BTCUSD pair attempts to break below the 50-day, which indicates increasing bearish momentum.
Volume has been declining since the January 10th price drop, as illustrated by the volume indicator over a 20-day basis.
Decentral Media, Inc., the publisher of Crypto Briefing, is not an investment advisor and does not offer or provide investment advice or other financial advice. Nothing on this website constitutes, or should be relied on as, investment advice or financial advice of any kind. Specifically, none of the information on this website constitutes, or should be relied on as, a suggestion, offer, or other solicitation to engage in, or refrain from engaging in, any purchase, sale, or any other any investment-related activity with respect to any transaction. You should never make an investment decision on an investment based solely on the information on our website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an investment.