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Ethereum Price Weekly Analysis

Ethereum Price Weekly Analysis – Double Top Looming?

Avatar Aayush Jindal 4 years ago

Key Highlights

  • Ethereum price failed miserably around the $15.00 resistance against the US Dollar, and traded lower.
  • The ETH/USD pair had a losing streak this past week, as it failed to gain momentum.
  • There is likely a double top pattern forming on the daily chart of the ETH/USD pair, which may produce a decline in the short term.

Ethereum price is trading under a major resistance area against the US Dollar, but at the same time remained above a crucial support.

Ethereum Price Trend

Ethereum price ETH failed to trade higher this past week against the US Dollar. There was a major hurdle on the upside around $15.00, which acted as a barrier and prevented the upside move. Moreover, the most important point is that the price failed to break the 61.8% Fib retracement level of the last drop from the $21.30 high to $6.94 low.

So, we can say that the price completed a correction, and preparing for a downside move. Another critical bearish signal is the fact that the price is forming a double top pattern forming on the daily chart. So, if the pattern is correct, then there is a high probability of a downside extension in the short term.

Ethereum Price Weekly Analysis

On the positive side, there is a bullish trend line formed on the same chart, which acted as a hurdle for sellers on many occasions and it may continue to act as a buy area. So, there are mixed signals, but there is one more fact that cannot be discarded. The pair is above the 100-day simple moving average. So, in my view, as long as the price is above the trend line support, there is a chance of a recovery in the near term.

Daily MACD – The MACD is currently in the bullish slope, but it should not change slope moving ahead.

Daily RSI – The RSI is just above the 50 level, suggesting caution in the near term.

Major Support Level – $12.20

Major Resistance Level – $13.20

 

Charts courtesy – SimpleFX

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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