- Ethereum has lost 1.6 percent for today and 13 percent of its value in the last 4 days.
- Prices expected to continue dropping up to the $341.3 support levels.
- Intraday traders can also look for shorting opportunities although the prices are in a pullback.
- Prices in the 1-hour chart are also moving towards the $341.3 support levels.
ETHUSD opened today’s trading session at $346.6, reaching highs of $349.5 and lows of $335.5. At press time, the crypto is trading at $341.1 after losing 1.6 percent of its value since the markets reopened for the day. The drop in price is a continuation of a downward trend that has been in play for the last 4 days, which has seen ETHUSD lose more than 13 percent of its market price.
ETH/USD daily price analysis
The Ethereum daily price analysis indicates that the crypto is coming out of a bearish flag after a strong bearish move that started on 2nd September 2020. The daily charts also show that the long term trading opportunities are on the upside, with the long term market trend of the cryptocurrency being to the upside.
The crypto has been trading along the upper trend line, which has acted as support for a long time and which the crypto has not been able to break out from, for a downside price reversal. Therefore, the current drop in the market prices is expected to retest the trend line support. This means that the ETHUSD prices will be dropping further as they approach the long term support level at $323.3 support levels as a previous analysis has shown.
After retesting the support levels, the prices will resume their long term bullish run. The resumption of the upward move will see the prices bounce from the $323 support level, and head to a recently formed resistance level at $392.3. Breaking that resistance will see the longs dominate the markets for weeks to come.
The Daily charts Relative Strength Index (RSI) indicator seems to confirm a downward move is in the offing. The reading of the indicator shows it at 42.33, with a movement from high to low. This shows that the crypto prices are moving away from the buy signals and are now highly biased to the downside, according to the indicator reading. This further proves that the markets will likely retest the support levels at $323.3 before the next big move.
ETH/USD intraday trading analysis
The one-hour ETHUSD price analysis charts for intraday shows that today’s trading session opened near a long term one-hour pivot support level S1 which sits at 351.4 levels.The prices have since been trading sideways with no clear trend. The hourly charts of ETHUSD also shows that the prices have formed a short term support level at $333.7 in the last few hours, which the prices for today has not broken or retested.
The price analysis for this Ethereum, however, can offer insight for traders looking for intraday opportunities, with price analysis showing that the prices have just broken out of a long term ascending channel to the downside. The strong bearish move, however, is in a pullback, which means that the resumption of another strong bearish move is in the offing for intraday traders. The price analysis shows that the prices will be able to break out of the current intraday support and resistance levels, and head to retest the daily support levels at 323.3.
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