Ethereum appears to be pausing from its recent slide, possibly making a pullback from the downtrend. Note that price has been moving below a descending trend line connecting the highs on the 4-hour chart.
Applying the Fibonacci retracement tool on the latest swing high and low shows that the 61.8% level lines up with the trend line and the 100 SMA dynamic inflection point. A smaller pullback could already hit a ceiling at the 38.2% Fib around $220 or the 50% Fib at $235.
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. The gap between the moving averages has narrowed, though, so there may be a slowdown in selling pressure.
RSI is on the move up and has plenty of room to climb before hitting overbought levels. This suggests that buying pressure could stay on for a bit longer before bears return. Similarly stochastic is heading north so bitcoin could follow suit until the oscillator hits overbought levels and turns back down.
Ethereum appears to be joining most of its peers in the slight rebound over the past 24 hours as sentiment in the financial markets has improved. On the Ethereum front, founder Vitalik Buterin clarified some of his earlier comments that may have been misinterpreted.
To be clear, I never said that there is “no room for growth” in the crypto ecosystem. I said there is no room for *1000x price increases*. A 1000x price increase from today means $200T in crypto, or ~an entire 70% of today’s global wealth being in crypto.
What I *actually* said is that, because large portions of the population have already heard of crypto, further growth of crypto in any sense must come from *depth* (ie. actual usage), and not bringing in more attention.
Images courtesy of TradingView
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