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Ethereum Price Analysis ETH / USD: In Dire Straits

ETH is under heavy selling pressure.

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  • Ethereum has a bearish short-term and medium-term trading outlook
  • The four-hour time frame shows that a head and shoulders pattern has been triggered
  • The daily time frame shows that a bullish inverted head and shoulders pattern remains in play

The decline in the broader cryptocurrency market has placed Ethereum in a vulnerable technical position, with the ETH / USD pair moving below critical technical support.

Ethereum had been struggling to rally away from the important $180 support level, after sharply reversing from the $195 resistance level earlier this month.

At current trading levels, Ethereum is trading lower by around 3.5 percent on a monthly basis, however, the ETH / USD pair still trades around 35 percent higher since the start of the year.

SIMETRI Research

The $180 level is the neckline of a bearish head and shoulders pattern, that has a downside projection that could take the ETH / USD pair towards the $160 support level.

Short-term technical indicators are also extremely bearish for the ETH / USD pair, with the MACD indicator on the four-hour time frame signaling further losses ahead.

The daily time frame shows that a bullish inverted head and shoulders pattern is still valid, despite the recent decline. Going forward, buyers must continue to defend the $160 level to stop the pattern being invalidated.

It is worth noting that the cryptocurrency has broken below its 50-day moving average, increasing medium-term selling pressure on the cryptocurrency.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Ethereum is bearish, at 40.00 %, while the overall long-term sentiment towards the cryptocurrency is also bearish, at 36.00%.

 

ETH H4 Chart November 19 by TradingView
ETH / USD H4 Chart by TradingView


Upside Potential

The four-hour time frame shows that key technical resistance is located at the $180 and $194 level. Buyers need to rally price above the $194 level to invalidate the bearish head and shoulders pattern.

Key technical resistance above the $194 level is found at the $220 and $240 levels.

 

ETH Daily Chart November 19 by TradingView
ETH / USD Daily Chart by TradingView


Downside Potential

The four-hour time frame is showing that the ETH / USD pair has strong short-term technical support around the $175 and $169 levels.

Key medium-term technical support for the ETH / USD pair is located at the $160 and $154 levels.


Summary

Ethereum is back under short and medium-term technical pressure while trading below the important $180 level.

Going forward, buyers need to defend the $160 level to avoid a much deeper decline in the ETH / USD pair.

 

Check out our introductory guide to Ethereum.

Ethereum Chart

 

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

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