Ethereum bears have regained momentum after the price found resistance around $1,290 to $1,280 area. Ethereum broke below $1,160 psychological support level. What is next? Bears to sustain the bearish pressure further in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
January 8, 2020, | AtoZ Markets – Ethereum price declined today morning during the Asian session against the U.S. Dollar. Ethereum was down by 10.55% on the day. It was the biggest one-day percentage decrease since January 8. The move downsides pushed ETH’s market capital underneath to $128.86B, or 12.87% of the complete cryptocurrency market capital. At its most elevated, Ethereum’s market capitalization was $139.12B. Ethereum has been trading inside the range of $1,000 to $1,290 area in the past few days. Ethereum is currently trading around $1,160 area and trying to push down further. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the intraday chart in the days ahead.
Ethereum Broke Below as the Price Requires a Downside Retracement
Ethereum is currently residing near $1,160 area and trying to decline further. However, the price has bounced once from the dynamic level of 20 EMA on the intraday chart.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum broke below and currently trading around $1,160 area. As per the current price action, if the price can have an impulsive bearish candle close below $1,180 to $1,160 area, the bears may sustain the bearish pressure towards $1,020 to $1,000 area in the process. Alternatively, if the price can have a bullish candle close above $1,180 to $1,160 area, the bulls may regain momentum and recover higher towards $1,280 to $1,290 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward in the days ahead. So, the bears may regain momentum if the price can break below the dynamic level in the coming days. Also, the MACD lines are currently residing above the 0.00 level and had a bearish crossover. It indicates that bears may continue the bearish pressure further in the days ahead.
ETH May Revert Back to the Mean
According to the daily chart, Ethereum broke below as the price requires a downward retracement. As per the current price action, if the price can have an impulsive daily bearish candle close below $1,180 to $1,260 area, the price may retrace towards $900 to $850 support level in the process. So, if the price retraces towards $900 to $850 support area and bounced upside with an impulsive daily bullish candle, the bulls may recover higher towards $1,280 to $1,290 area as a first target. The second target will be $1,380 to $1,400 area if the price breaks above $1,280 to $1,290 area in the coming days.
Image: Ethereum Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price downside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an extended period of bullish momentum, the price requires a downward retracement before continuing the bullish trend. A daily close is required to identify the definite momentum in the coming days.