To receive Michael’s analysis directly via email, please SIGN UP HERE
- ETHUSD carves monthly opening-range below resistance- break to offer guidance
- Check out our new 4Q projections in our Free DailyFX Trading Forecasts
- Join Michael for Live Weekly Strategy Webinars on Mondays at 12:30GMT
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.
New to Forex? Get started with this Free Beginners Guide
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.
Join Michael on Friday for his bi-weekly Live Webinar on the Foundations of Technical Analysis- Register for Free Here!
Relevant Data Releases
Check out this week’s DailyFX Webinar Schedule
Other Setups in Play
- Bitcoin Prices Eye Record High – Pullbacks to Offer Opportunity
- USD/JPY Stair-Stepping Down Support
- Weekly Technical Outlook: Post-NFP Setups in View as USD Struggles
- USD/CHF Rally Eyes Major Resistance Ahead of NFP
- Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at email@example.com.