Ethereum / USD Technical Analysis: Minor Setback
The pair has seen a correction, but it still has strong support and is trading above its moving averages.
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- Ethereum retains a bullish bias in the short-term, with the ETH / USD pair still trading well above its 200-period moving average
- Ethereum has a bullish medium-term outlook while trading above the $152.00 level
- The daily time frame still shows the bullish inverted head and shoulders pattern with a target of $230.00
Ethereum / USD Short-term price analysis
Ethereum has a bullish short-term trading bias, with the cryptocurrency still trading well above its 200-period moving average on the four-hour time frame.
The four-hour time frame shows that a technical pullback is underway, after the ETH / USD pair found strong weekly resistance from just above the $185.00 level.
Price is now probing the neckline of a bullish inverted head and shoulders pattern, with key near-term support below the neckline found at $148.00.
ETH / USD H4 Chart (Source: TradingView)
Pattern Watch
Traders should note that the bullish inverted head and shoulders pattern on the four-hour time frame will only be invalidated if price trades under the $125.00 level.
Relative Strength Index
The RSI indicator on the four-hour time frame has turned bearish and is heading sharply lower.
MACD Indicator
The MACD indicator on the four-hour time frame has turned bearish and shows the presence of bearish MACD price divergence.
Ethereum / USD Medium-term price analysis
Ethereum has a bullish medium-term trading bias, with the ETH / USD pair continuing to trade above its 200-day moving average, which is currently located at the $152.00 level.
The daily time frame also shows a large inverted head and shoulders pattern, with it failing so far to reach its overall upside objective.
The daily time frame is showing that key technical support below the ETH / USD pair’s 200-day moving average is currently found at the $143.00 and $125.00 levels.
XTZ / USD Daily Chart (Source: TradingView)
Pattern Watch
Traders should note that the overall upside target of the inverted head and shoulders pattern on the daily time frame will take the ETH / USD pair towards the $230.00 level.
Relative Strength Index
The RSI Indicator on the daily time frame is bullish, although it is starting to correct from extremely overbought conditions.
MACD Indicator
The MACD indicator on the daily time frame is showing that the MACD histogram is trending lower, while the MACD signal line is still bullish.
Conclusion
Ethereum is coming under pressure in the near-term after bulls failed to fully ignite the bullish inverted head and shoulders pattern. If sellers can move price under the neckline of the bullish inverted head and shoulders pattern, the $152.00 still offers strong technical support.
Overall, medium-term bulls still have the upper-hand while the inverted head and shoulders pattern on daily time frames remain valid.
Check out our Ethereum coin guide for easy-to-digest info on the project.
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