Ethereum price analysis: heavy losses expected below $365 level
14:37, 25 August 2020
Ethereum has posted a bearish weekly reversal candle, following four weeks of straight gains for the second largest cryptocurrency.
Ethereum price analysis shows that a loss of the $365 level could accelerate technical selling below the $300 level.
ETH/USD medium-term price trend
The ETH/USD pair is trading at a critical juncture over the medium term, following last week’s bearish reversal from the $440 area.
Ethereum technical analysis shows that further medium-term losses are expected while the price trades below the $395 level.
The daily time frame shows that continued daily price closes under the 23.6 per cent Fibonacci retracement of the 2018 trading low, to the all-time price high (around the $395 level) is likely to encourage technical selling.
Furthermore, the last weekly candle closed under this important Fibonacci level, placing the emphasis on further downside for the ETH/USD pair.
Traders should note that medium-term bulls are likely to buy into dips towards the $300 support level, in expectation of a powerful counter rally back towards the $440 level, and possibly the $500 level.
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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 $365 level.
The one-hour time frame currently shows that a bearish head-and-shoulders pattern has formed, following the recent reversal from the $440 area.
According to technical analysis, the size of the head-and-shoulders pattern indicates that the ETH/USD pair could drop towards the $290 area.
Watch out for further short-term losses, towards the $365 area, if the price falls beneath the neckline of the bullish pattern.
Technical analysis shows that key short-term resistance is located at the $415, and $430 levels.
ETH/USD technical summary
Ethereum technical analysis shows that the ETH/USD pair could be preparing for a deeper technical correction towards the $290 area.
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