Technical Analysis – ETHUSD flies towards 11-month high; strongly positive

Melina Deltas, XM Investment Research Desk

ETHUSD skyrocketed towards a new eleven-month high of 346.57 earlier today, holding well above the 20- and 40-simple moving averages (SMAs) in the 4-hour timeframe.

Momentum indicators are standing in the positive area in the 4-hour chart with the MACD just above the trigger line and the stochastic oscillator looking overstretched above the 80 level.

In the event of an upside reversal, the 352 resistance level could act as a barrier, registered on April 2018. A break above this level would open the way towards the 400 psychological level, identified by the bottom on June 2018.

On the other hand, in case of a decline, the market should see the 317 support area, before testing the 20-SMA where it stands near 311. A drop below this level would shift the bias from strongly bullish to neutral in the near term and open the way towards the next key support level of the 288 and the 23.6% Fibonacci retracement level of the upleg from 80 to 346.57 near 284.

In brief, the price could gain further steam in the short term in case of a jump above the eleven-month high, however, the stochastic flirts with negative movement.