- The Ethereum price is moving in a range-bound nature, ahead of a further committed direction.
- ETH/USD price action has formed a bearish flag structure via the daily chart view.
ETH/USD: Recent Price Behaviour
The Ethereum price is moving within consolidation mode, following the steep bear attack between 20-24 September. ETH/USD was forced to tumble a chunky 30% over the noted period, after running into a heavy supply zone; $215-235. The price appeared to be staging recovery had been showing some promising, given the run higher of three consecutive weeks. It was the most consistent weekly run that has been observed since May.
Sellers remain in control of Ethereum, as the bears produce an engulfing candle via the weekly. The short-lived three weeks of gains which equated to some 37%, were completely wiped out and reversed in the latest drop seen. In terms of the trend south that has been in play since June, it has seen ETH lose some 55%. The way in which price action is shaping up, it does appear set to give back all of the 2019 recoveries.
Ethereum was on a solid bull run from the very start of 2019, after bottoming out late 2018. The price started down at the psychological $100 territory, to then go on rallying up to heights of $360. At the time, it was the highest price that had been seen since August 2018. The current consolidation being observed is within a critical area of demand, which appears to be the last ahead of a plunge back down to $100.
Critical Trend Line Breach
As part of the 2019 recovery, ETH/USD was being supported to the upside by a long-running ascending trend line. It had been in play December 2018, providing necessary comfort on its move to the north. A breakout to the downside was forced by the bears last week, which resulted in a weekly closure below. The retest in the latest weekly candle has been observed and so far resulting in rejection.
Given the above described weekly technical development, in addition to the daily bearish flag structure, further moves south are eyed. Targets to the downside would be; $150 and then $100. Entry to be around the current market price, with stops placed just above the bearish flag at $191.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
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