ETHUSD: Head and Shoulders Pattern Below $2,700
Ethereum continued to move in a bearish phase last week, having touched a low of $2,448 on March 7th, after which the prices started to consolidate above the level of $2,500.
We can see ETHUSD moving in a bearish momentum because of the Russia-Ukraine war and its effects on the global investor sentiments.
Despite the fact that some correction was seen in the USD, the medium-term outlook for Ethereum remains bearish with a downside projection of $2,200.
We can clearly see a head-and-shoulders pattern below the $2,700 handle which is a bearish pattern signifying the end of a bullish phase and the start of a bearish phase in the markets.
ETH is now trading just below its pivot level of $2,588 and is moving in a bearish channel. The price of ETHUSD is now testing its classic support level of $2,558, and Fibonacci support level of $2,580 after which the path towards $2,300 will get cleared.
The relative strength index is at 34 indicating a WEAKER demand for Ethereum, as well as the continuation of the selling pressure in the markets.
All of the technical indicators are giving a STRONG SELL market signal.
All of the moving averages are giving a STRONG SELL signal, and we are now looking at the levels of $2300 to $2200 in the short-term range.
ETH is now trading below both its 100 hourly and 200 hourly simple moving averages.
- A bearish reversal seen below the $2700 mark in Eth
- Short-term range appears to be strongly BEARISH
- The daily RSI is below 50 at 44 indicating a BEARISH market
- The average true range is indicating LESSER market volatility
Ether: Bearish Momentum Continues Below $2,700 ...More info: blog FXOpen
