Ethereum (ETH/USD) weakened sharply early in today’s North American session as the pair depreciated to the 400.01 area after trading as high as the 451.00 area during the Asian session, a test of the 396.69 area that represents the 23.6% depreciation from 1419.96 to 80.60. Technical trading was evident overnight when the pair failed to sustain a break of the 444.08 area, representing the 23.6% retracement of the recent appreciation from 371.50 to 488.95. Stops were then elected below the 430.23 and 416.37 areas during the downturn, representing the 50% and 61.8% retracements of the appreciating range. Earlier this week, traders drove the pair as high as the 488.95 area after some Stops were elected above the 487.55 area, its first test of the psychologically-important 500.00 figure since July 2018. Stops were recently elected above the 474.59 area, an upside price objective that represents the 50% retracement of the historical depreciation from 828.97 to 80.60. Additional upside price objectives include the 498.68, 516.03, 517.38, 531.80, and 543.09 areas.
The pair’s ongoing upward momentum was confirmed recently when buying pressure emerged around the 418.79 area during a pullback, representing the 61.8% retracement of the historical depreciation from 627.83 to 80.60. This level, however, could emerge to be technical resistance during moves lower.Stops were elected below the 394.80, 389.94, 384.36, 376.07, 369.57, 359.36, and 345.38 areas during the pair’s recent depreciation from the 488.95 area, and traders are curious to see if these levels provide any technical support during pullbacks. The 396.69 area remains an important technical level, representing the 23.6% retracement of the historical depreciation from 1419.96 to 80.60. Following the pair’s recent appreciation, important technical levels include the 416.00, 409.64, 389.91, 383.02, 374.83, and 359.36 areas. Traders are observing that the 50-bar MA (4-hourly) is bullishly indicating above the 100-bar MA (4-hourly) and above the 200-bar MA (4-hourly). Also, the 50-bar MA (hourly) is bullishly indicating above the 100-bar MA (hourly) and above the 200-bar MA (hourly).
Price activity is nearest the 100-bar MA (4-hourly) at 409.97 and the 200-bar MA (Hourly) at 417.30.
Technical Support is expected around 349.75/ 331.95/ 315.08 with Stops expected below.
Technical Resistance is expected around 488.95/ 498.68/ 516.03 with Stops expected above.
On 4-Hourly chart, SlowK is Bearishly below SlowD while MACD is Bearishly below MACDAverage.
On 60-minute chart, SlowK is Bullishly above SlowD while MACD is Bearishly below MACDAverage.