Ethereum is consolidating. Uncertainty persists

Technical indicators:
  • Market Cap, billion: $100.26
  • % chg. over the week: -0.57
  • 52 wk range: 201 - 1420

The main cryptocurrencies have stabilized after a significant correction from the beginning of this year. Over the past week, the ETH/USD quotations have formed quite strong support and resistance levels: 960.00 and 1120.00, respectively. Pressure on digital currencies is still being provided by news from South Korea. The country's government plans to ban the use of anonymous bank accounts when trading cryptocurrency. Participants of the financial markets expect additional drivers.

The current technical pattern on ETH/USD
  • Support levels: 960.00, 760.00, 600.00
  • Resistance levels: 1120.00, 1275.00, 1400.00
ETH/USD

There is an ambiguous technical picture on ETH/USD. The trading instrument is in a sideways movement (960.00-1120.00). We recommend opening positions if the price is fixed above/below key levels.

Indicators do not send accurate signals:
- the price has crossed 50 MA and 200 MA;
- the MACD histogram has fixed near the 0 mark.

Trading recommendations

In case of breakthrough and retest of the 1120.00 resistance level, a further growth of the ETH/USD quotations is expected. The movement is tending to 1275.00-1400.00.

Alternative option. If the price fixes below the support level of 960.00, it is necessary to consider sales of ETH/USD. The target movement level is 760.00-600.00.

When following the positions, we recommend using a trailing stop.

by JustForex, 2018.01.26

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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