Seller Momentum High in Ethereum [ETH] and EOS As They Fail to Follow up Increases
Ethereum Price Analysis
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.
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 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.
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.
- 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:
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