ETH/USD Price Analysis: Ethereum Rebounds from Multi-month Lows

Ethereum prices are adult some-more than 15% off a Jun low with a allege now coming multi-month slope resistance. The near-term technical opinion leaves room for serve advances though eventually a crack above a monthly open would be indispensable to advise a incomparable spin is underway. Here are a pivotal levels that matter for ETH/USD.

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Ethereum Daily Price Chart (ETH/USD – Log)

ETH/USD Daily Price Chart - Ethereum log-scale

Notes: Ethereum prices incited only forward of connection support this week during 437 where a 61.8% prolongation of a May decrease converges on trendline support fluctuating off a Sep low. Price has continued to trade within a proportions of a descending pitchfork formation fluctuating off a Feb high with a 50-line serve highlighting this support zone.

Initial insurgency stands during 556 and is corroborated closely by 577/87 where a monthly open and a 200-day relocating normal concentration on a top parallel- a crack there is indispensable to advise a some-more poignant low is in. Note a tentative insurgency trigger on a daily RSI profile.

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Bottom line: We’re looking for insurgency only aloft on this miscarry with a broader risk weighted to a downside while next a monthly open.

Ethereum IG Client Positioning (ETH/USD)

Ether IG Trader Sentiment - ETH/USD

  • A outline of IG Client Sentiment shows traders are net-long ETH/USD- a ratio stands during +11.52 (92.0% of traders are long) – bearish reading
  • Long positions are 0.9% aloft than yesterday and 2.7% aloft from final week
  • Short positions are 6.9% reduce than yesterday and 4.3% aloft from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-long suggests Ether prices might continue to fall. Yet traders are some-more net-long than yesterday but reduction net-long from final week andthe multiple of stream positioning and new changes gives us a serve churned Ether trade bias from a view standpoint.

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— Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or hit him during mboutros@dailyfx.com

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