Ethereum (ETHUSD) Forming 1st Red Weekly Candle in 6 Weeks
Ethereum (ETHUSD) is forming its first red weekly candle in six weeks as profit-taking kicks in after ETHUSD briefly tested the psychologically key 400 whole figure resistance level. With the current red weekly candle quickly lengthening reversing most gains over the last two weeks, a bearish Island Reversal could be forming.
Significantly, ETHUSD is testing upchannel support (on the weekly chart). The daily chart provides a clearer set of warnings for bulls with the RSI, Stochastics and MACD decisively sliding lower. Nevertheless, ETHUSD remains within an upchannel (on the weekly and daily chart), and until upchannel support breaks, bears will remain cautious.
Bitcoin (BTCUSD) is forming its first red weekly candle in six weeks as profit-taking kicks in after BTCUSD briefly tested the psychologically key 5,000 whole figure resistance level. While the red weekly candle is still just beginning to form, and far from being bearish just yet (given its small body so far), the technicals on BTCUSD can rapidly change within a day given its volatility.
The daily chart provides a clearer set of warnings for bulls as the RSI, Stochastics and MACD all appear to be tiring. evertheless, BTCUSD remains within an upchannel (on the weekly and daily chart), and until upchannel support breaks, bears will remain conservative.
- By Darren Chu
Darren Chu, CFA, country rep for Australia, India and UAE for NYSE Liffe '10-'14 (with TMX Group and CMC Markets '04-'10), is a trader and trading educator.