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

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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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