Never miss a story from Michael Boutros

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Michael Boutros

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Ethereum prices are up more than 15% off the June low with the advance now approaching multi-month slope resistance. The near-term technical outlook leaves room for further advances but ultimately a breach above the monthly open would be needed to suggest a larger turn is underway. Here are the key levels that matter for ETH/USD.

New to Trading? Get started with this Free Beginners Guide

Ethereum Daily Price Chart (ETH/USD - Log)

ETH/USD Daily Price Chart - Ethereum log-scale

Notes: Ethereum prices turned just ahead of confluence support this week at 437 where the 61.8% extension of the May decline converges on trendline support extending off the September low. Price has continued to trade within the confines of a descending pitchfork formation extending off the February high with the 50-line further highlighting this support zone.

Initial resistance stands at 556 and is backed closely by 577/87 where the monthly open and the 200-day moving average converging on the upper parallel- a breach there is needed to suggest a more significant low is in. Note the pending resistance trigger on the daily RSI profile.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line: We’re looking for resistance just higher on this rebound with the broader risk weighted to the downside while below the monthly open.

Ethereum IG Client Positioning (ETH/USD)

Ether IG Trader Sentiment - ETH/USD
  • A summary of IG Client Sentiment shows traders are net-long ETH/USD- the ratio stands at +11.52 (92.0% of traders are long) – bearish reading
  • Long positions are 0.9% higher than yesterday and 2.7% higher from last week
  • Short positions are 6.9% lower than yesterday and 4.3% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Ether prices may continue to fall. Yet traders are more net-long than yesterday but less net-long from last week andthe combination of current positioning and recent changes gives us a further mixed Ether trading bias from a sentiment standpoint.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

Other Setups in Play:

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com