- ETH/USD moving inside a compressing structure
- Levels to take into account are $395 on the upside and $302 on the downside
ETH/USD has developed since early May a technical structure that is compressing the price and has organized some interesting patterns. Every Ethereum attempt to break the topside of the triangle has developed a bearish big-size Doji candle, redirecting the price towards the base of the price structure.
MACD is showing a significant width in-between lines, ensuring that a new cross with the resistance trendline is on the way, still with some room to advance. This resistance has already stopped strong bullish runs in the past, so it is likely that the upcoming test will be eventful, with every Ethereum trader focusing on those all-time high levels. Expect some profit-taking and some new bids there.
The bullish scenario shows $404.98 as the most meaningful resistance before a free ride to unexplored territory, which would trigger a huge bullish potential. If we look at a bigger timeframe, the weekly chart shows a wide open MACD aiming to the upside, so if $404.98 is broken, bullish potential is huge.
-636470245548962234.png)
On the bearish side, support is located at $302, in the trendline coming from early May. If broken, that would take Ethereum price straight to the $270 mark, where the 200-SMA is now standing.
Conclusion
Price action is going to dictate, as usual, upcoming moves for Ethereum, the second-biggest cryptocurrency by volume, but right now MACD strength is setting up a bullish scenario for the upcoming weeks. The current technical structure shall only be changed by extreme external shocks that could change the whole technical picture.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD trades sideways below 1.0450 amid quiet markets
EUR/USD defends gains below 1.0450 in European trading on Monday. Thin trading heading into the Xmas holiday and a modest US Dollar rebound leaves the pair in a familair range. Meanwhile, ECB President Lagarde's comments fail to impress the Euro.
GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision
GBP/USD trades on the defensive below 1.2600 in the European session on Monday. The pair holds lower ground following the downward revision to the third-quarter UK GDP data, which weighs negatively on the Pound Sterling amid a broad US Dollar uptick.
Gold price sticks to modest gains; upside seems limited amid USD dip-buying
Gold price attracts some follow-through buying at the start of a new week and looks to build on its recovery from a one-month low touched last Thursday. Geopolitical risks stemming from the protracted Russia-Ukraine war and tensions in the Middle East, along with trade war fears, turn out to be key factors benefiting the safe-haven precious metal.
Let’s focus on the good for a few more days
Last week was chaotic. The Fed’s hawkish 25bp cut, the hint from the dot plot that there would be only two rate cuts next year instead of four – because the US economy is too strong to continue the cuts as previously predicted - and the US debt limit shenanigans even before Trump took office gave a negative jolt to the US stock markets.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.