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- ETHUSD carves monthly opening-range below resistance- break to offer guidance
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ETH/USD Daily Chart
Technical Outlook: Ethereum prices have carved out an impressive monthly opening-rang just below key resistance at 312/21- a region defined by the 61.8% retracement of the September decline and the 61.8% ext of the advance off the subsequent lows. Interim support rests with the range lows at 287 with our near-term bullish invalidation unchanged at 271/74. A topside breach targets the 100% ext / September reversal-day close at 350/55 backed by the record high-day close at 385.
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Notes:A closer look at price action furtherhighlights the October opening rangebetween 287-312. Look for the break with a close above 321 needed to fuel the next leg higher in Ethereum. Respect a downside break however with such a scenario likely to see a quick washout towards 271/74. Broader bullish invalidation for the longer-term outlook rests at 234.
Bottom line: while the broader outlook remains weighted to the topside, a break below this range would risk a larger correction before continuing higher. Ultimately I would be looking for better long entries on a move lower OR on a break & retest of the opening range highs as support.
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- Written by Michael Boutros, Currency Strategist with DailyFX
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