ETHUSD: Bearish Engulfing Pattern Below $1721
Ethereum was unable to sustain its bullish momentum and after touching a high of 1721 on 25th Aug started to decline against the US dollar, coming down below the $1500 handle on 29th Aug.
We can see heavy selling pressure in Ethereum because of which it continued its decline touching a low of $1424.
We can clearly see a bearish engulfing pattern below the $1721 handle which is a bearish pattern and signifies the end of a bullish phase and the start of a bearish phase in the markets.
ETH is now trading just above its pivot level of 1541 and is moving into a strong bearish channel. The price of ETHUSD is now testing its classic support level of 1522 and Fibonacci support level of 1536 after which the path towards 1500 will get cleared.
The relative strength index is at 40 indicating a WEAK demand for Ether and the continuation of the downtrend in the markets.
We can see the adaptive moving average bearish crossover pattern in AMA20 and AMA50 indicating a bearish trend reversal in the 30-minutes time frame.
Both the STOCHRSI and Williams percent range are indicating an OVERSOLD market, which means that the prices are expected to correct upwards in the short-term range.
Most of the technical indicators are giving a STRONG SELL market signal.
Most of the moving averages are giving a STRONG SELL signal and we are now looking at the levels of $1450 to $1500 in the short-term range...More info: blog FXOpen
