Ethereum Technical Analysis for 01/12/2016 – Market in Overbought Territory?

Ethereum staged an impressive rally over the past two days, but the market is now trading at a key price level. The 0.0026 area acted as resistance at end of November of 2015, and ETH had not traded near this price since that time, so this level is now acting as a barrier once more. The market has made several attempts to trade higher today, but instead, several large sell-offs occurred that pushed price as low as 000233471.

Judging by the extremely volatile price action today, it would seem that the bullish momentum seems to be fading. The MACD indicator is also showing divergence, which very frequently foreshadows changes in market direction. The market has been on a tear since January 8, and it seems that a retrenchment may be on the way over the next few days.

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Disclaimer:  This is not trading/investment advice!

Chart Source: https://poloniex.com/exchange#btc_eth

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Traderman

Avid blogger, entrepreneur, and cryptocurrency enthusiast. I love writing about cryptocurrency, NFTs, price analysis, and much more!

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