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08 Nov 2019
1 Minute min read

Ethereum Weekly Update

Written by OspreyFX News Team

Ethereum Weekly Update Talking Points:

  • Focus lies on the $200 threshold.
  • All eyes placed on September’s highs.

Focus on the $200 threshold

The week has highlighted a recovery in Ethereum across the board, consolidating further gains above the 200 SMA at H4 charts. Currently, the cryptocurrency is trading around the $186 area, important to note that a pullback happened mid-week.

The Pullback opened the doors for a deeper correction. That said, there’s a range established since October that may be defined and cleared for the bulls or bears. A bearish trendline generated from the highs of September appeared. Capping the upside in ETH and helping to provide a robust resistance around the $194.57 level, where there’s a key barrier stablished.

A breakout beyond such a level could strengthen the bullish bias towards the $203.10 level in a first degree. Consolidating above the broken trendline.

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Eyes on September’s highs

Once the ETH/USD pair clears up the resistance, all eyes will be on the $216.52 level. Which is very far from the prior critical region. This is happening in the context of the cryptocurrency’s sharp decline, which it suffered in September.

Ether should break beyond that hurdle to validate a bullish scenario for the mid-term. On the downside, there is a demand zone established around the $158 area. It has also formed a double bottom that provided a strong impulse to the upside at the end of October.

If Ethereum manages to break below the support level of $184.81, the focus will shift to the $176.48 zone. Where it coincides with the 200 simple moving average. If such a region gives up in favour of the bears, the cryptocurrency will strengthen its bearish stance towards $169.36, ahead of the $158 level.

The RSI indicator is treading water around the neutral territory at the H4 chart, while Momentum is pointing downwards, indicating a deceleration of the bulls’ force.