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Ethereum / USD Technical Analysis: Engine Restart Needed

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  1. ETH / USD is bullish in the short-term despite a strong technical pullback

  2. ETH / USD pair’s medium-term outlook remains uncertain until a clear break from the triangle pattern on the daily time frame occurs

  3. Ethereum needs to hold price above the $166.00 level to reignite medium-term buying pressures

 

Ethereum / USD Short-term price analysis

In the short-term, the ETH / USD pair retains its bullish bias as price still trades inside an inverted head and shoulders pattern on the four-hour time frame.

The recent rally also formed a major new technical high, with the ETH / USD pair briefly trading above the important $166.00 resistance level.

Technical indicators are turning lower on the four-hour time frame following the strong move lower; if price moves below the $125.00 level, buyers may start to be alarmed that the bullish pattern could be invalidated.


ETH / USD H4 Chart                                                                         (Source: TradingView)

Pattern Watch

Traders should note the bullish double-bottom pattern is still in play, whilst short-term bulls still hold the head edge. Caution is advised for sellers, as the bullish inverted head and shoulders pattern remains valid and dangerous at current levels, as it holds a $60.00 upside projection.

MACD Indicator

The MACD indicator on the four-hour time frame has turned bearish and is generating a strong sell signal.

RSI Indicator

The RSI indicator on the four-hour time frame has turned bearish after moving away from overbought territory.

 

Ethereum / USD Medium-term price analysis

Ethereum remains bearish over medium-term, due to the ETH / USD pair failing to hold price above the well-defined symmetrical triangle pattern and the $160.00 level.

Furthermore, the ETH / USD pair still trades well below its 200-day moving average, despite the strong recovery higher over recent weeks.

Reversal warning signs have been showing on the RSI indicator on the daily time frame, as the second largest cryptocurrency’s recent rally put the indicator into extremely overbought conditions.


ETH / USD Daily Chart                                                                         (Source: TradingView)

Pattern Watch

The daily time frame shows that the ETH / USD pair has moved back inside the symmetrical triangle pattern, a sustained break below trendline support would be disastrous for the cryptocurrency.

MACD Indicator

The MACD indicator on the daily time frame remains bullish although it has significant scope to turn lower.

RSI Indicator

The Relative Strength Indicator on the mentioned time frame is currently neutral after quickly reversing from overbought territory.

 

Conclusion

Ethereum remains bullish in the short-term, due to the presence of the overwhelmingly bullish inverted head and shoulders pattern and price still holding above the $140.00 level.

Medium-term bulls must force price back above the triangle pattern on the daily time frame and mount a sustained rally above the $200.00 level in order to shift the ETH / USD pair’s medium-term outlook. Traders should note the bullish objective of both patterns would take Ethereum back above the $200.00 level.



Ethereum Chart

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