Ethereum Technical Analysis for 05/20/2016 – Market in Overbought Territory?

ETH has been on a relentless bull market since Monday, and some important pivot zones have formed along the way. The market retraced quite heavily today as price is now trading right around the 0.0307 pivot area, which has been used multiple times this week; once as resistance on the 18th; four times as support on the 19th.

If the 0.0307 pivot area fails to halt the selling, the next technical area of any significance can be found at 0.0282. Between Tuesday and Thursday of this week, the 0.0282 area propped up the market several times. Given the prior history of this level, any additional bear raids over the next few days will likely encounter support at 0.0282.

During today’s retracement, price broke underneath the 0.0323 level. This area has some history and may be retested over the next 24h-48h, so I would recommend traders keep an eye on it.

In breaking underneath 0.0323, the market also broke the trend line! Is today’s price action signaling overbought market conditions?

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Disclaimer:  This is not trading/investment advice!

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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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