ETHUSD - 1D Chart Analysis
The investors reacted to the rate increasing decision made by Feds with a lot of uncertainty - Here is why.
What's the most important to know is that this decision is just a small part from a bigger plan which has the purpose to bring back the money in the banks from the economy (the markets are included). And of course, the questions always remains the same:
- "Is this only the first wave of sell offs? Or it will be others as well?”
- "Is it possible for the US Banks to have again liquidity problems?”
- "Is it possible for the ECB to do the same? If yes, in how much time from now?”
- "A new possible financial crisis will bring any kind of benefits for the crypto currencies market? Or it's still too early to think about this?”
Overall, it seems that the fundamentals which are expected to bring a positive impulse to the market are late to appear.
Technicals on the other hand shows that the Fed's decision hurts.
Ethereum, like most of the crypto currencies has registered yesterday, for the 3rd time in a row, a day in which the price failed to close the day higher than it started and what we can see now seems to be more like a slight recovery attempt.
The RSI has bounced back from the level of 32 while the price has dropped as well below the lower standard deviation of the Bollinger Bands indicating a possible rebound.
Furthermore, the market confirmed in the meantime the drop which was indicated on the 10th of October by the Stochastic's "crossover" but it shows also that the price is still searching for the bottom.
Based on these 3 indicators, we might be tempted to think that the market is having a "slow down" rather than a "bounce back", the later scenario being confirmed by the MACD.
The possible target prices are :
[ 1 ] If the market will continue the correction it may encounter a difficult resistance at the price of 205$. If it will break it, we can consider 212$ as a target in extension.
[ 2 ] If the market will continue the downtrend, it may break the support level at 189$ scenario in which 179$ can be considered as a target price in extension.
What's the most important to know is that this decision is just a small part from a bigger plan which has the purpose to bring back the money in the banks from the economy (the markets are included). And of course, the questions always remains the same:
- "Is this only the first wave of sell offs? Or it will be others as well?”
- "Is it possible for the US Banks to have again liquidity problems?”
- "Is it possible for the ECB to do the same? If yes, in how much time from now?”
- "A new possible financial crisis will bring any kind of benefits for the crypto currencies market? Or it's still too early to think about this?”
Overall, it seems that the fundamentals which are expected to bring a positive impulse to the market are late to appear.
Technicals on the other hand shows that the Fed's decision hurts.
Ethereum, like most of the crypto currencies has registered yesterday, for the 3rd time in a row, a day in which the price failed to close the day higher than it started and what we can see now seems to be more like a slight recovery attempt.
The RSI has bounced back from the level of 32 while the price has dropped as well below the lower standard deviation of the Bollinger Bands indicating a possible rebound.
Furthermore, the market confirmed in the meantime the drop which was indicated on the 10th of October by the Stochastic's "crossover" but it shows also that the price is still searching for the bottom.
Based on these 3 indicators, we might be tempted to think that the market is having a "slow down" rather than a "bounce back", the later scenario being confirmed by the MACD.
The possible target prices are :
[ 1 ] If the market will continue the correction it may encounter a difficult resistance at the price of 205$. If it will break it, we can consider 212$ as a target in extension.
[ 2 ] If the market will continue the downtrend, it may break the support level at 189$ scenario in which 179$ can be considered as a target price in extension.
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