Ethereum took a big hit during the recent crypto bloodbath throughout the month of May. After trading at the month-high at $830 over the US Dollar and 0.084 over Bitcoin, Ethereum is currently trading at $610 and 0.079 BTC.
Looking at the chart, the Fibonacci Retracement tool and the trend lines indicate that Ethereum is moving to a crucial point. The MACD and RSI indicators show some bullish signals, but more confirmation of volume trade is needed for a successful breakout.
Fibonacci Retracement Tool and RSI
On the Fibonacci Retracement tool, the 0.5 Fibonacci level at 0.073 BTC serves as strong support level, while the 0.382 Fibonacci level at 0.085 serves as the resistance line. The trend lines are converging at the 0.075 BTC level. This means that a strong sustained break above the 0.075 BTC level will be needed before the bullish sentiment comes back.
The RSI indicator is currently at the 52 level. This shows that the momentum is slowly shifting back to an the upward direction and buyers are gradually regaining control of the market.
Looking at the MACD indicator, the MACD line is currently crossing over the signal line, which means that ETH/BTC trading pair is signaling a buy signal. On the other hand, however, since the MACD line has not yet decisively crossed over, this could still be a fake out. A higher cross over will be needed in the next days to confirm that the MACD is signaling a real buy signal.
(According to Investopedia.com, “the Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the “signal line”, is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.”)
Overall, Ethereum is currently facing a crucial point with the convergence of the trend lines. The MACD and RSI indicators show that Ethereum could be preparing for a bullish move in the coming weeks.
(DISCLAIMER: This is not financial advice. The analysis and recommendations provided here are based on my own research and personal opinion. Trade wisely!)
Author: Author : Mil
Mil is based out of Philippines and has been writing for cryptonewsbytes.com since 2017. He enjoys doing market analysis on crypto and follows the trends very closely. He is a marketing genius and gets tremendous amount of energy to the team. He enjoys reading books in his spare time and big time into basketball.
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