ETHUSD Analysis: Bearish Harami Pattern below $1,871

FXOpen

Bulls couldn’t take control of the market, and after touching a high of $1,871 on 23 May, the ETH/USD pair is moving in a bearish trend, touching a low of $1,762 today in the early Asian trading session.

The short-term outlook for Ethereum has turned mildly bearish.

On the hourly chart:

  • ETHUSD is under bearish pressure after a decline below the $1,800 handle with immediate targets of $1,750 and $1,700.
  • The bearish harami pattern is below the $1,871 handle, signifying the end of a bullish phase.
  • The relative strength index is at 40.11, indicating weak demand for Ether and a continuation of the selling pressure in the market.
  • The CCI is giving a neutral signal, meaning that the Ethereum price is expected to remain in the consolidation phase in the short-term range.
  • ETH price is now trading below the 100-hour simple and 200-hour exponential moving averages.
  • The Ethereum price opened bearish this week.
  • The average true range indicates low market volatility.

ETH Bearish Reversal Seen below $1,871

On the daily chart:

  • The ETH price is trading just above its pivot level of $1,780 and is moving into a mild bearish channel.
  • The price is about to break its classic support level of $1,774 and its Fibonacci support level of $1,778; further supports are $1,742 and $1,755.
  • The horizontal support of the channel is broken.
  • The short-term range is expected to be mildly bearish.
  • Ethereum price is ranging near a new 1-month low.

Ethereum price continues falling after it failed to clear the $1,900 resistance.

After hitting the $1,871 barrier, the ETH price failed to gain pace against the US Dollar. We can see major downside moves as the pair broke $1,796, which is a 14-3 day raw stochastic at 20.

Most of the technical indicators are bearish. Most moving averages are bearish at the current market level of $1,787.

The key support levels to watch are $1,755, which is a 50% retracement from a 13-week high/low, and $1,772, which is the first support level of the pivot point indicator.

The Week Ahead

Ethereum to USD exchange rate continues to correct lower, below the $1,800, indicative of the bearish momentum, and is expected to move towards the $1,750 level in the medium-term range in the H1 timeframe.

We see a short-term bearish trend line forming from $1,871 towards $1,768.

The resistance zone is at $1,814, which is a pivot point, and at $1,841, at which the price crosses the 18-day moving average.

The weekly outlook for Ethereum price is $1,700 with a consolidation zone of $1,750.

The immediate short-term outlook for ETH has turned mildly bearish, the medium-term outlook has turned bearish, and the long-term outlook is neutral in present market conditions.





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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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