Technical analysis of Ethereum market: the price trend is not optimistic

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04/06/2016 Ethereum Market Technical Analysis - Price Trend is Not Optimistic

Highlights

Ethereum price started to decline against the US dollar due to price weakness and is trading around $10.00.

Yesterday I highlighted a resistance zone, which turned out to be correct, causing Ethereum to experience more losses

A falling line has appeared on the hourly Ethereum to USD chart, which is now acting as resistance.

Ethereum price encountered some selling pressure and started to decline. However, the support level of $10.00 remained strong.

Ethereum Price – Is a Breakout Possible?

As mentioned before, Ethereum did not recover yesterday against the US dollar, but continued to fall, reaching a new low of $10.00 a week, which also became the support level for Ethereum against the US dollar. The current trading price is trying to climb, but it has encountered resistance near the falling line on the hourly data chart. (Data from Kraken)

However, the price of Ethereum has exceeded the 23.6% golden line (the highest price in the previous period was $11.90 and the lowest price was $10.00). Therefore, the price is likely to break through the highlighted area and resistance level and achieve a short-term rebound. After the breakthrough, it is possible to stay near the 100-hour simple moving average, which is also the 61.8% golden line (the highest price in the previous period was $11.90 and the lowest price was $10.00).

If the price fails to break above the ascending trendline and resistance zone, then a short-term decline to the $10.00 support level is possible. As long as the price is below the trendline and resistance zone, then selling can be considered. The stop loss should be placed above the highlighted resistance level and the hourly stagnation zone.

Hourly MACD – The MACD has turned up, which is a sign of a minor recovery.

Hourly RSI (Relative Strength Index) – The RSI is below the 50 line which shows that the bull market is in jeopardy.

Intraday Support – $10.00

Intraday Resistance – $10.60