Ethereum: technical analysis
06 February 2019, 11:36
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 99.00 |
| Take Profit | 93.00, 87.50, 81.00 |
| Stop Loss | 106.00 |
| Key Levels | 81.00, 87.50, 93.00, 100.00, 106.00, 112.50, 125.00 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 114.00 |
| Take Profit | 125.00 |
| Stop Loss | 107.00 |
| Key Levels | 81.00, 87.50, 93.00, 100.00, 106.00, 112.50, 125.00 |
Current trend
Since last week, Ether has been trading at 106.00 but this Tuesday it dropped to the level of 100.00 (Murrey [0/8]). This was caused both by a general weakening of the cryptocurrency market and by the discovery by Parity Technologies of a new vulnerability from which such popular Ethereum services as Infura, MyEtherWallet and MyCrypto could suffer. For its elimination, a new update is needed.
At present, the price is testing the level of 100.00, which seems quite strong, since it is at the lower border of the Murrey trading range. Nevertheless, the probability of its breakdown is preserved, since the Bollinger bands and Stochastic are directed downwards. In this case, a further decline to the levels of 93.00, 87.37 (Murrey [–1/8]) and 81.00 (December lows) is possible. The resumption of growth will be possible after the fixing of the instrument above the middle line of Bollinger bands at the level of 112.50 (Murrey [1/8]). In this case, the price can grow to the level of 125.00 (Murrey [2/8]) but now it seems unlikely.
Support and resistance
Resistance levels: 106.00, 112.50, 125.00.
Support levels: 100.00, 93.00, 87.50, 81.00.
Trading tips
Short positions can be opened after the price is set below the level of 100.00 with the targets at 93.00, 87.50, 81.00 and stop loss around 106.00.
Long positions can be opened after the price consolidates above the level of 112.50 with the target at 125.00 and stop loss around 107.00.
Implementation period: 3–5 days.
Since last week, Ether has been trading at 106.00 but this Tuesday it dropped to the level of 100.00 (Murrey [0/8]). This was caused both by a general weakening of the cryptocurrency market and by the discovery by Parity Technologies of a new vulnerability from which such popular Ethereum services as Infura, MyEtherWallet and MyCrypto could suffer. For its elimination, a new update is needed.
At present, the price is testing the level of 100.00, which seems quite strong, since it is at the lower border of the Murrey trading range. Nevertheless, the probability of its breakdown is preserved, since the Bollinger bands and Stochastic are directed downwards. In this case, a further decline to the levels of 93.00, 87.37 (Murrey [–1/8]) and 81.00 (December lows) is possible. The resumption of growth will be possible after the fixing of the instrument above the middle line of Bollinger bands at the level of 112.50 (Murrey [1/8]). In this case, the price can grow to the level of 125.00 (Murrey [2/8]) but now it seems unlikely.
Support and resistance
Resistance levels: 106.00, 112.50, 125.00.
Support levels: 100.00, 93.00, 87.50, 81.00.
Trading tips
Short positions can be opened after the price is set below the level of 100.00 with the targets at 93.00, 87.50, 81.00 and stop loss around 106.00.
Long positions can be opened after the price consolidates above the level of 112.50 with the target at 125.00 and stop loss around 107.00.
Implementation period: 3–5 days.
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