Ethereum Confirms A Lower Low

traded sharply lower yesterday, after hitting resistance at $3265. The slide took the crypto below the $2918 level, marked by the low of Jan. 10, thereby confirming a forthcoming lower low. Overall, Ethereum is printing lower highs and lower lows below the downside line taken from the high of Dec. 1, which paints a negative short-term picture, in our view. We believe that the break below $2918 may have encouraged more bears to join the action and thereby push the price to the $2715 barrier, marked by the low of Sept. 24. If they don’t stop there, we could see them diving towards one of the $2518 or $2435 barriers, marked by the lows of Aug. 5 and 3, respectively. Should they stay willing to continue lower, the next stop could be the $2150 territory, marked by the low of Jul. 27. Looking at our short-term oscillators, we see that the RSI, already near 30, turned down again, while the MACD lies below both its zero and trigger lines. Both indicators detect strong downside speed and support the notion for further declines. On the upside, we would like to see a clear break above $3405 before we start examining the case of a bullish reversal. This could confirm the break above the aforementioned downside line and perhaps pave the way towards the $3665 barrier, which acted as strong support between Dec. 13 and Jan. 3. If the bulls have the strength to keep sailing north, we could see them targeting the $3880 barrier, marked by the high of Jan. 4, where another break could carry extensions towards the $4140 zone, defined as resistance by the peak of Dec. 23. Ethereum 4-hour chart technical analysis. Disclaimer: The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval. 68.02% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure - https://www.jfdbrokers.com/en/legal/risk-disclosure .

Ethereum Confirms A Lower Low

traded sharply lower yesterday, after hitting resistance at $3265. The slide took the crypto below the $2918 level, marked by the low of Jan. 10, thereby confirming a forthcoming lower low. Overall, Ethereum is printing lower highs and lower lows below the downside line taken from the high of Dec. 1, which paints a negative short-term picture, in our view.

We believe that the break below $2918 may have encouraged more bears to join the action and thereby push the price to the $2715 barrier, marked by the low of Sept. 24. If they don’t stop there, we could see them diving towards one of the $2518 or $2435 barriers, marked by the lows of Aug. 5 and 3, respectively.

Should they stay willing to continue lower, the next stop could be the $2150 territory, marked by the low of Jul. 27. Looking at our short-term oscillators, we see that the RSI, already near 30, turned down again, while the MACD lies below both its zero and trigger lines. Both indicators detect strong downside speed and support the notion for further declines.

On the upside, we would like to see a clear break above $3405 before we start examining the case of a bullish reversal. This could confirm the break above the aforementioned downside line and perhaps pave the way towards the $3665 barrier, which acted as strong support between Dec. 13 and Jan. 3.

If the bulls have the strength to keep sailing north, we could see them targeting the $3880 barrier, marked by the high of Jan. 4, where another break could carry extensions towards the $4140 zone, defined as resistance by the peak of Dec. 23.

Ethereum 4-hour chart technical analysis.

Ethereum 4-hour chart technical analysis.

Disclaimer: The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval. 68.02% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure - https://www.jfdbrokers.com/en/legal/risk-disclosure .