Ethereum price analysis: observing negative price divergence
15:29, 13 August 2020
Ethereum continues to enjoy strong dip-buying interest, as the second-largest cryptocurrency closely mirrors the price movements of its nearest rival, Bitcoin.
Ethereum price analysis shows that a large amount of negative MACD price divergence has formed, and the cryptocurrency is also failing to close above key long-term Fibonacci resistance.
ETH/USD medium-term price trend
The ETH/USD pair is set for another important week, as bulls and bears continue to battle for control of the cryptocurrency around the $400 level.
Ethereum technical analysis shows that failure to hold the price above $395 could encourage a major bearish correction.
The daily time frame shows that the ETH/USD pair is struggling to move above the 23.6 per cent Fibonacci retracement of the 2018 trading low to the all-time price high, around the $395 level.
Failure to overcome this key Fibonacci level could result in a strong medium-term technical correction back towards the $320 area.
If bulls can hold the price above the key resistance zone, further upside advancement towards the $440 and $480 levels should be expected.
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ETH/USD short-term price trend
Ethereum technical analysis shows that the cryptocurrency has a short-term bullish bias while the price trades above the $290 level.
The four-hour time frame currently shows that the price is trapped inside a large triangle pattern between the $360 and $400 levels.
According to technical analysis, a $40 directional move should take place once a breakout from the triangle pattern takes place.
Traders should note that substantial amounts of negative MACD price divergence are also present across the one-hour time frame, and extend down towards the $310.00 and $270.00 levels.
ETH/USD technical summary
Ethereum technical analysis shows that the ETH/USD pair needs to perform multiple daily price closes above $395 to encourage the next major push higher.
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