28-05-2016
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Ethereum Price Weekly Analysis – Watch Out For Break!




Ethereum price weakened a few points this past week. Now, can it manage to recover or will it break down for more losses? Let’s try to figure it out.
Ethereum Price Weekly Analysis
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Key Highlights

  • Ethereum price slowly and steadily moved down this past week against the US Dollar.
  • The price is currently trading near a critical support area, which must hold if ETHUSD has to move back higher.
  • There is a bullish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which may act as a pivot zone for ETH moving ahead.

Ethereum price weakened a few points this past week. Now, can it manage to recover or will it break down for more losses? Let’s try to figure it out.

Ethereum Price – Trend Line Support Holds Key

Ethereum price traded in a stable fashion this past week, as there were no wild swings in ETHUSD. The price was mostly seen struggling this past week, and every time there was a minor correction, bears stepped in to prevent additional gains. Now, the price seems to be trading near a crucial support area, as ETH is trading near a monster bullish trend line on the 4-hours chart of Ethereum price (data feed via Kraken).

If the price has to remain in the bullish zone, then the trend line support must hold in the near term. The 38.2% Fib retracement level of the last wave from the $3.5 low to $15.10 high is also around the trend line support area, pointing towards the importance of the support area.

Ethereum Price Weekly Analysis

If there is a break below the trend line support area, and ETHUSD closes below it, then more losses are likely moving ahead. The 50% Fib retracement level of the last wave from the $3.5 low to $15.10 high can also be tested. If you are looking to buy, then stop should be a H4 candle close below the trend line support area.

4-hours MACD – The MACD is in the bearish zone, calling for a downside move.

4-hours RSI – The RSI is just above the 50 level, which is a positive sign for the bulls.

Intraday Support Level – $10.00

Intraday Resistance Level – $11.80

 

Charts courtesy of Kraken via Trading View

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Aayush Jindal

Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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