Technical Analysis – ETHUSD loses momentum below SMAs in near term

Melina Deltas, XM Investment Research Desk

ETHUSD is holding marginally below the moving averages in the 4-hour chart, while according to the technical indicators the market seems to be neutral to negative. The RSI is sloping down below the 50 level and the MACD oscillator is flattening above its trigger line but below the zero level.

In case of a move lower, the price could challenge the seven-week low of 99.00. This area could be difficult for the bears to overcome initially, but if there is a closing session below it, the price could hit the 89.90 obstacle.

On the other side, in case of an upward movement and a cross above the moving averages, there is a possibility of a re-test of the 109.05 resistance barrier. Slightly above this region the price could challenge the 23.6% Fibonacci retracement level of the downleg from 156.25 to 99.00 around 112.50. Further upside pressure could drive the market until the 38.2% Fibonacci of 120.80.

To sum up, having a look at the bigger picture, if the 156.25 high is penetrated, this could signal a major change to the direction in the near term. Otherwise, the price could continue moving downwards, confirming the bearish long-term structure.