Ether (ETH) Price Bounces Off Target But Weakness Remains
Ether (ETH) News and Commentary
- Ether rebounds off the February 6 swing-low but lower prices seem likely.
- Ether-Bitcoin spread recovers Wednesday’s weakness.
If you are new to trading cryptocurrencies, or are just looking to refresh your trading knowledge, please see the DailyFX ‘Guide to Day Trading Bitcoin and other Cryptocurrencies’.
Ether (ETH) Re-Bound Lacks Conviction
Wednesday’s late sell-off saw Ether trade back at the February 6 swing-low, a target we have been talking about over the last few weeks and mentioned again at yesterday’s Cryptocurrency Webinar. The token also traded below all three moving averages, another bearish signal, while the RSI indicator remain mid-range. The crypto-market as a space has reclaimed some of Wednesday’s falls but trading volumes remain low and the path of least resistance is for lower prices. On the downside the next target is the two December lows, either side of $500, which should provide reasonable support in the short- to medium-term.
ETH Price Chart Daily Time Frame (July 15, 2017 – May 24, 2018)
IG Client Sentiment data show that retail traders remain just under 90% net-long ETH although long positions have been pared back slightly over the last few days.
Ether vs Bitcoin Spread Recovering
The ETH/BTC spreadis currently trading around 2% higher on the session, recovering Wednesday’s falls. Price action around the 200-day moving average needs to be closely watched, and closed above if the medium-term is to continue. The RSI indicator has just turned higher and out of oversold territory, while the May 7 swing low provides the first level of support if the spread eases.
Ether vs Bitcoin Spread Four Hour Chart (April 7 – May 24, 2018)
--- Written by Nick Cawley, Analyst.
You can contact the author at Nicholas.firstname.lastname@example.org or via Twitter @nickcawley1.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.