ETHBTC still reside inside downward slope formed in the month shown in the 4-hour chart. The price level is traded under 50-day SMA and 200-day SMA. It fell below 200-day SMA since October 10 2016. The general momentum is in the bearish bias and undergone massive 3-days sold off from dec 14. Another roller coaster trading followed suit as Ethereum tried to muscle a rebound from the low of 0.00948. The tally run was exhausted after peaked at 0.01006. Thereafter, changed its course yet again and floated around sub-0.00960 now. But a reversal descending wedge pattern was cast as a result of these swings which mean ETHUSD is ready for fresh move on the reverse again. The falling wedges curve down is naturally bullish bias. However, this upward bigotry need a convincing resistance breakout to the region of 0.00975 – 0.00980.
The stochastic and RSI is still sagging and started to move in the oversold area. These signals bonding well for the upswing reversal proposition. Any breakout above the 0.00980 will inspire ETH to make further upside move to 0.0996. The key price level around 0.0100 (which also 0.236 retracement) will be instrumental as it failed here for the past weeks.
Failure to cross intersect the 0.00980, the price could see further consolidation sideways in the band of 0.00950-0.00970. Any slide below this level, there will two all-important levels of 0.00920-0.00900.
R1 – 0.00966
R2 – 0.00980
R3 – 0.00996 (0.236 retracement)
S1 – 0.00948
S2 – 0.009250 – 0.00900
S3 – 0.00860
breakout reversal – buy at 0.00970 cut lose and take profit ratio of 1:4
or short at 0.00950 cut lose and take profit ratio of 1:3
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Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.