Ethereum has been on the sidelines over the last week as the price struggle near the 20-simple moving average (SMA).
Technically, the price could lose some ground in the short-term as the RSI is changing direction to the downside and is moving towards its 50 neutral mark, while the stochastics are creating a bearish cross within %K and %D lines.
A rebound on the 20-day SMA should drive the price towards the 263.60 resistance level. Higher up, the eight-month high of 279.20 could attract attention.
Alternatively, a decline under the 20-SMA could meet a strong barrier between 237.85 and the 23.6% Fibonacci of the upleg from 80.00 to 279.20 around 232.00. A drop below this level could open the way towards the 213.25 support.
In the short-term picture, Ethereum is gently pointing down today forming a negative profile. A strong rally below the 20-SMA would extend the downward pattern off 279.20.
In brief, the price of Ethereum could lose further steam in the short term, while in the medium-term the pair continues to hold a positive outlook.
by Melina Deltas, XM Investment Research Desk
Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities.
Melina studied Pure Mathematics at Lancaster University and has a Master’s Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).