Ethereum (ETH/USD) has broken below the 21 ema zone. A bearish retracement is now taking place. What will be the key breakout and what are the bearish targets?
Price Charts and Technical Analysis
The ETH/USD is unable to break back above the 21 ema zone, which is a bad sign for the bulls. The previous uptrend was strong but the bears are likely to push price action below the long-term support trend line (purple). A breakout below that line and the previous bottom favours a further drop towards the next two support zones (green boxes). The first support zone is a confluence with the previous top, -27.2% Fibonacci target and the 50% Fibonacci level. The second support zone is the previous sideways zone, the -61.8% Fibonacci target and the 61.8% Fibonacci retracement level.
The bearish pressure is even more visible on the 4 hour chart. The red candles from our EW software confirm bearishness and price action is now clearly below the long-term moving averages. A break and pullback followed by another break lower is expected (see arrows). The wave patterns suggest a bearish ABC (purple) pattern. The ABC could complete a wave 1-2 (grey) on the daily chart.
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
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