Seller Momentum High in Ethereum [ETH] and EOS As They Fail to Follow up Increases

Ethereum Price Analysis

Ethereum Weekly Chart – Source:

Ethereum recorded a loss last week which resulted in the price dropping below a support level at $166.

$166 has acted formerly as both support and resistance.

The level briefly provided some buying pressure during the volatile price drops in November.

The price has been rising so far this week, but selling pressure would be expected if the price rises back up to $166.

Ethereum Daily Chart – Source:

A Marubozu candle was recorded yesterday on the daily chart for Ethereum indicating that the buyers were in control during yesterdays trading.

The Marubozu candle is being followed up today with a Doji candle forming on the current daily candle.

The Doji indicates uncertainty from traders and decreases the odds that the increases recorded yesterday can be sustained.

Momentum has mostly been on the side of the sellers in recent price action with both the MACD and RSI trending downwards.

The failure to follow up on yesterdays increases is also forming a bearish market structure on the daily chart.

If the price does continue yesterdays increases, a lower high will form increasing the odds that the next significant move will be to the downside.

EOS Price Analysis

EOS Weekly Chart – Source:

EOS similarly dropped below a key level after recording significant losses from last week’s trading.

EOS dropped below support at $4.96, a level which acted as a significant point of support from August to November.

EOS Daily Chart – Source:

During the drops last week, EOS found some support at $4.29, a former point of resistance.

Similar to Ethereum, EOS is following up yesterdays increases with a Doji candle today.

This will likely result in a lower high forming, and even if the price were to increase from here, resistance is expected at $4.96.

Similar to Ethereum, the daily MACD and RSI for EOS have also been trending downward reflecting the recent selling pressure.

The key level to monitor to the downside for Ethereum is $4.96.

After numerous tests of this level last week, another test would have increased odds of breaking below.

Consecutive tests of a support level weaken the level with fewer buyers to hold the level on each test.

Key Takeaways:

  • Both EOS and Ethereum drop below key levels during declines last week.
  • Increases for both yesterdays are followed up with Doji candles today indicating traders are uncertain for future price prospects
  • Declines look likely as the daily RSI and MACD for both trend downward indicating high seller momentum

Latest Ethereum & EOS News:

DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

Seller Momentum High in Ethereum [ETH] and EOS As They Fail to Follow up Increases was originally found on Cryptocurrency News | Tech, Privacy, Bitcoin & Blockchain | Blokt.

Comments (No)

Leave a Reply