Monday, September 4, 2017 11:52 AM EDT
ETH/USD Daily Chart
(Click on image to enlarge)
Technical Outlook: Ethereum prices reversed off slope resistance last week with the decline now approaching in initial support at the confluence of the 100% extension, the 38.2% retracement and the trendline extending off the July lows at 295-303. Heading into the start of the month, the focus will be on this region and price will need to stabilize here if the broader ascending channel structure is to remain viable.
ETH/USD 240min Chart
(Click on image to enlarge)
Notes: Last week we noted Ethereum price targets at, “374 backed by 385- Note that this level also converges on parallel resistance into the close of the month.” Indeed the rally failed to hold above the record high-day close with price registering a high of 395 on September 1st before turning sharply lower.
From a trading standpoint, I’ll be looking for exhaustion into this support zone early in the week with interim resistance eyed at 320 backed by the 50-line (currently ~337) and the 9/2 reversal day close at 354. A close above this level would be needed to give prices a shot at testing the high-day close again at 385.
A break below this region invalidates the broader ascending median-line formation with such a scenario risking a drop into 265/71 and more significant support at 234/37. Bottom line: prices need to stabilize HERE with our near-term focus weighted to the topside while above 295 for now. Keep in mind U.S. markets are offline today in observance of Labor Day and thin liquidity conditions may persist until Asia opens.
---
Relevant Data Releases
(Click on image to enlarge)
Disclaimer: DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the ...
more
Disclaimer: DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the fundamental and technical influences driving the currency and commodity markets. With nine internationally-based analysts publishing over 30 articles and producing 5 video news updates daily, DailyFX offers in-depth coverage of price action, predictions of likely market moves, and exhaustive interpretations of salient economic and political developments. DailyFX is also home to one of the most powerful economic calendars available on the web, complete with advanced sorting capabilities, detailed descriptions of upcoming events on the economic docket, and projections of how economic report data will impact the markets. Combined with the free charts and live rate updates featured on DailyFX, the DailyFX economic calendar is an invaluable resource for traders who heavily rely on the news for their trading strategies. Additionally, DailyFX serves as a portal to one the most vibrant online discussion forums in the forex trading community. Avoiding market noise and the irrelevant personal commentary that plague many forex blogs and forums, the DailyFX Forum has established a reputation as being a place where real traders go to talk about serious trading.
Any opinions, news, research, analyses, prices, or other information contained on dailyfx.com are provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
less
How did you like this article? Let us know so we can better customize your reading experience.