Ethereum: general analysis
09 August 2018, 13:28
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL |
| Entry Point | 358.12 |
| Take Profit | 312.50, 250.00 |
| Stop Loss | 380.00 |
| Key Levels | 250.00, 312.50, 375.00, 437.50, 500.00 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 375.10 |
| Take Profit | 437.50 |
| Stop Loss | 355.00 |
| Key Levels | 250.00, 312.50, 375.00, 437.50, 500.00 |
Current trend
Ether price falls along with the entire crypto-currency market. At the moment, it tends to the lows of November 2017 around 312.50 (Murrey [5/8]). The fall is due to SEC postponing the allowing the trust of VanEck and SolidX companies to create a Bitcoin-based ETF until the end of September. Earlier, also at the end of September, the allowing the Cboe Exchange to trade shares of this ETF was postponed, too. Investors reacted negatively to the news, although experts noted earlier that permission to create ETF on Bitcoin is unlikely to be received this year, as the regulator will need more time to analyze the situation. The market expected that the emergence of new digital products will lead to a surge in investment, but now it will have to wait.
Support and resistance
The price fell below the level of 375.00 (Murrey [6/8]), which opens the way to the levels of 312.50 (Murrey [5/8]) and 250.00 (Murrey [4/8]). The probability of continuing the decline is confirmed by the reversal of Bollinger bands downwards and the growth of MACD histogram in the negative zone. Stochastic is in the oversold zone, which may indicate the beginning of a correction of the midline of Bollinger bands to the area of 437.50, but the price will have to consolidate above 375.00, which is less likely so far.
Resistance levels: 375.00, 437.50, 500.00.
Support levels: 312.50, 250.00.
Trading tips
Short positions can be opened from the current level with the targets at 312.50, 250.00 and stop loss at 380.00.
Long positions can be opened above the level of 375.00 with the target at 437.50 and stop loss around 355.00.
Implementation period: 3–5 days.
Ether price falls along with the entire crypto-currency market. At the moment, it tends to the lows of November 2017 around 312.50 (Murrey [5/8]). The fall is due to SEC postponing the allowing the trust of VanEck and SolidX companies to create a Bitcoin-based ETF until the end of September. Earlier, also at the end of September, the allowing the Cboe Exchange to trade shares of this ETF was postponed, too. Investors reacted negatively to the news, although experts noted earlier that permission to create ETF on Bitcoin is unlikely to be received this year, as the regulator will need more time to analyze the situation. The market expected that the emergence of new digital products will lead to a surge in investment, but now it will have to wait.
Support and resistance
The price fell below the level of 375.00 (Murrey [6/8]), which opens the way to the levels of 312.50 (Murrey [5/8]) and 250.00 (Murrey [4/8]). The probability of continuing the decline is confirmed by the reversal of Bollinger bands downwards and the growth of MACD histogram in the negative zone. Stochastic is in the oversold zone, which may indicate the beginning of a correction of the midline of Bollinger bands to the area of 437.50, but the price will have to consolidate above 375.00, which is less likely so far.
Resistance levels: 375.00, 437.50, 500.00.
Support levels: 312.50, 250.00.
Trading tips
Short positions can be opened from the current level with the targets at 312.50, 250.00 and stop loss at 380.00.
Long positions can be opened above the level of 375.00 with the target at 437.50 and stop loss around 355.00.
Implementation period: 3–5 days.
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