Technical indicators:
At the moment, the ETH/USD quotations are consolidating after a significant rally from the beginning of this year. The technical pattern is ambiguous. The main cryptocurrency is under pressure. There was information that South Korea plans to ban the digital currency trading. In the near future, the technical correction of Ethereum is not ruled out.
The current technical pattern on ETH/USD
At the moment, the ETH/USD quotations are testing the key support and resistance levels: 1275.00 and 1400.00, respectively. It is recommended to open positions if the price fixes above/below these marks.
The signals of the indicators vary:
– The price has fixed above 50 MA and 200 MA, which indicates the bullish sentiment;
– The MACD histogram is in the negative zone and continues to decline, which gives a signal to sell.
Trading recommendations
If the price fixes below the level of 1275.00, the correction of the ETH/USD quotations is expected. The closest target for profit taking is the support level of 1150.00. The movement is tending to 50.0%-61.8% of the correction zones.
Alternative option. If the price fixes above the key resistance of 1400.00, it is necessary to consider buying ETH/USD. The target level of movement is 1500.00-1600.00.
When following the positions, we recommend using a trailing stop.
