ETH/USD Analysis - At Critical Support

coinsholar (31)in #steempress • 6 years ago

Weekly

Let's simplify things a bit here on the macro level. I have drawn out the obvious support and resistance levels here. The most eye-catching level right now is the support we are testing for the second time, the first being in April. This was established as a strong resistance area back before the huge bull move as it was tested three times before breaking up. Hopefully we can maintain this support.

Keep in mind, we made a lower low with this current price action and that may indicated more blood on the way. If we lose this, $340 USD may be the last level before a long downfall.

Stoch remains oversold while RSI is in a low neutral zone. We may need to have RSI touch oversold before we can bounce back. This can be achieved with some sideways action.

Daily

Here we can see Ethereum has dipped into my buy zone. Well.... more like plunged. It also pierced through support momentarily before bouncing a bit. It is tough to say what will happen over the next few days.

Stoch is deeply oversold and RSI broke into oversold territory as well for the first time in months. However, this was a loss of RSI support at 30 where we saw bounces before. This may be indicative of a willingness to fully reverse instead of just another leg down.

I want to be bullish, but this market makes it so hard.

As long as we remain above this level, I remain bullish.

4 Hour

We saw a bit of support before going into this green zone with a strong plunge after the break. There has been a gradual recovery over the past several hours, but there is strong selling pressure as indicated by the longer top wicks on these candles.

Stoch is approaching overbought rapidly, but Stoch remains just within oversold conditions, likely looking for a breakout. An RSI breakout here could very well break us out of this green zone and into a local higher high.