Ethereum Completes 61.8% Fibonacci Retracement!
The ETH/USD crypto pair failed to extend its previous-day uptrend rally and dropped well below the $3,800 level from its record high of $4,213.46. Not only Etherum but all crypto assets experienced a sudden drop overnight. In that way, the ETH/USD prices pulling back firmly after reaching a record above $4,200. However, the reason for the reduction in values wasn’t immediately apparent. Still, we can attribute this to the recent declines in the S&P 500 SPX, -1.04%, Dow Jones Industrial Average DJIA, -0.10%, and the Nasdaq Composite Index. Apart from this, the losses were further bolstered by the stronger US dollar. The prevalent bullish bias around the US dollar was mainly sponsored by the downbeat market sentiment, which tends to undermine safe-haven assets like the US dollar. The ETH/USD pair price is trading well below the 3,900 level and consolidating in the range between 3,781.86 - 4,025.11.
Despite the ongoing optimism over the COVID-19 vaccination, the market trading sentiment failed to extend its previous-day positive performance and turned sour on the day. However, the selling bias was completely sponsored by the Uncertainty over Fed’s future action. Investors think that the US Federal Reserve (Fed) is not planning to recall the easy money policies. The fears were triggered by the mixed comments from the Fed policymakers and expectations that the massive stimulus package will heat the world’s biggest economy, requiring the Fed’s interference. Elsewhere, the beating of the technology shares due to the Citibank downgrade put some additional pressure on the market trading sentiment.
As in result, the broad-based US dollar managed to stop its previous day bearish bias and drew some fresh bids on the day as the market risk-off mood underpinned the safe-haven demand for the greenback. However, the upticks in the dollar turned out to be one of the key factors that kept the ETH/USD prices lower.
ETH/USD Intraday Technical Levels
Pivot Point: 3928.52
ETH/USD - Technical Outlook
The ETH/USD pair has exhibited a dramatic sell-off from a high level of 4,193 to 3,673 level. The ETH/USD pair has completed 61.8% Fibonacci retracement on the four hourly timeframes, and now is gaining support at the 3,810 level. The ETH/USD pair’s immediate resistance stays at 3,990 and 4,198 levels on the higher side. Conversely, the violation of 3,810 opens up additional room for selling until 3,673. The 20 & 50 periods EMA are still in support of buying trend, while the MACD and RSI are showing slight weakness in buying trend. However, both of the leading technical indicators are still holding in a buy zone. Considering all technical indicators in mind, bullish bias remains dominant in the ETH/USD pair. All the best!
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