Technical Analysis – ETHUSD struggles under 40-SMA with weak momentum
Posted on July 22, 2019 at 10:48 am GMT
Melina Deltas, XM Investment Research Desk
ETHUSD has been moving with weak momentum over the last few sessions, remaining between the 20- and 40-simple moving averages (SMAs) in the 4-hour chart. Following the rebound on 187.63, the 61.8% Fibonacci retracement level of the upward wave from 80.00 to 362.045, the technical indicators are suggesting more gains to come ahead; the stochastic is positively sloped and below the overbought zone, while the MACD is extending its upward movement towards the zero line.
In the event of an upside reversal, the 232 resistance level could act as strong. A break above this level could open the way towards the 38.2% Fibonacci mark of 254 and the 260.90 resistance level, putting the market back into the Ichimoku cloud.
In case of a decline, the market may see the 20-SMA currently at 214.84, before testing the 212.30 support. A drop below the latter could drive the market until the one-month low of 188.82, which stands around the 61.8% Fibonacci.
In brief, the price could gain further steam in the short term in case of a jump above the 40-SMA and the Ichimoku cloud.