Ethereum Price Technical Analysis (May 23): Correction to Support Level Is Expected

Ethereum (ETH)trade is currently trading at around $237. The virtual coin was in an uptrend until it hit the resistance of $271.66; there is a formation of a hanging man pattern at the resistance level. It is a bearish pattern indicating correction. Support level is at $232.66.

Looking at the chart, we see a formation of ascending triangle, which is a bullish signal indicating that the overall trend is yet bullish.

Dow Theory

According to Dow Theory, the digital coin is currently appearing to be in a public participation phase; during this phase, negative sentiment starts to dissipate. This phase tends not only to be long lasting, but also the one with the largest price movement.

It is also the phase in which most technical and trend traders start to take long positions. The trendline is also acting as support.

Moving Average

When taking 9 period moving averages (blue) with 21 period moving averages (red), there is a bullish crossover; yet, the price is the below nine period moving average indicating correction.

Bollinger Bands

The price is again back within the channel with RSI back from the overbought to the normal level and is declining, indicating further correction in price. The middle average line of Bollinger bands is also acting as support.

Conclusion

Ethereum (ETH)trade is currently trading at approximately $237. The resistance is at $271.66 and support is at $232.66. There is a formation of ascending triangle, which is a bullish signal. Although the overall trend is positive, it is suggested not to take long positions at the current price levels as the price is expected to touch the support; look for buying opportunity around the support level. The above-mentioned levels can also be used for swing trading. The midterm target is $373.

Pivot Points

Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 91.87 138.02 186.05 232.20 280.23 326.38 374.41
Fibonacci 138.02 174.00 196.22 232.20 268.18 290.40 326.38
Camarilla 208.19 216.82 225.46 232.20 242.72 251.36 259.99
Woodie’s 92.81 138.49 186.99 232.67 281.17 326.85 375.35

Technical Indicators

Name Value Action
RSI(14) 63.447 Buy
STOCH(9,6) 46.369 Neutral
STOCHRSI(14) 100.000 Overbought
MACD(12,26) -3.080 Sell
ADX(14) 44.155 Buy
Williams %R -17.483 Overbought
CCI(14) 251.1674 Overbought
ATR(14) 30.9693 High Volatility
Highs/Lows(14) 68.1507 Buy
Ultimate Oscillator 54.381 Buy
ROC 101.676 Buy
Bull/Bear Power(13) 135.4120 Buy

What do you think about the article?

Sharing Is Caring: