ETHUSD Analysis: Bearish Engulfing Pattern Is below $1,972

Bulls couldn’t  take control of the market, and after touching a high of $1,972 on 06 May, the ETH/USD pair is moving in a bearish trend, touching a low of $1,792 on 10 May.

ETH/USD is under mild bearish pressure after its decline below the $1,850 handle, with immediate targets of $1,800 and $1,750 visible in the H1 timeframe.

The bearish engulfing pattern is below the $1,972 handle, signifying the end of a bullish phase.

The relative strength index is at 36.51, indicating very weak demand for Ether and a continuation of the selling pressure in the market.

Both the STOCHRSI and Williams %R are signalling the ETH is oversold, meaning that the Ethereum price is expected to correct upwards in the short-term range.

ETH price is now trading below 100-hour simple and 200-hour exponential moving averages.

• ETH price bearish reversal is seen below the $1,972 mark.
• The short-term range is expected to be mildly bearish.
• The average true range indicates low market volatility.
• The CCI indicator formed a bearish divergence with the price chart.

ETH bearish reversal is seen below $1,972

On the daily chart, the ETH price is trading just below its pivot level of $1,820 and is moving into a mild bearish channel.

Some of the technical indicators are also signalling a neutral tone of the markets. Most of the technical indicators are bearish. Most moving averages are bearish at the current market level of $1,819. The Parabolic SAR indicator provides a bearish reversal signal in the 4-hour timeframe.

The price is about to break its classic support level of $1,805 and its Fibonacci support level of $1,811; further supports are $1,809, $1,794, which is a 1-month low, and $1,755, which is a 50% retracement from 13-week high/low.

The Week Ahead

Ethereum to USD exchange rate continues declining, below $1,850, 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 $1,972 towards the $1,808 level.

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.

The resistance zone is at $1,847, which is a pivot point, and at $1,870, which is a 14-day RSI at 50.

The weekly outlook is $1,750 with a consolidation zone of $1,800.

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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.