Ethereum prices are up more than 15% off the June low with the advance now approaching multi-month slope resistance. The near-term technical outlook leaves room for further advances but ultimately a breach above the monthly open would be needed to suggest a larger turn is underway. Here are the key levels that matter for ETH/USD.
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Ethereum Daily Price Chart (ETH/USD - Log)
Notes: Ethereum prices turned just ahead of confluence support this week at 437 where the 61.8% extension of the May decline converges on trendline support extending off the September low. Price has continued to trade within the confines of a descending pitchfork formation[2] extending off the February high with the 50-line further highlighting this support zone.
Initial resistance stands at 556 and is backed closely by 577/87 where the monthly open and the 200-day moving average converging on the upper parallel- a breach there is needed to suggest a more significant low is in. Note the pending resistance trigger on the daily RSI[3] profile.
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Bottom line: We’re looking for resistance just higher on this rebound with the broader risk weighted to the downside while below the monthly open.
Ethereum IG Client Positioning (ETH/USD)
- A summary of IG Client Sentiment[5] shows traders are net-long ETH/USD- the ratio stands at +11.52 (92.0% of traders are long) – bearish reading
