Ethereum: Bouncing on Support, Temporarily Oversold 4H (Jun. 12)

X Force Global Analysis:

In this analysis, we take a look at Ethereum (ETH), and explore the potential bounce that is in play for the short term.

Analysis

- Ethereum has been on a mega steady bullish rally for weeks.
- It has gone through a phase of breakouts, consolidations, and further breakouts
- The rally has been consistent, with an ascending trend line support demonstrating the direction of the trend
- We have seen that the previous times Ethereum consolidated, the 0.382 and 0.618 Fibonacci retracement levels acted as strong support
- As such, we could expect strong support at the current 0.382 Fib retracement support
- Technical indicators also demonstrate potentiality of a bounce
- The Stochastic Oscillator is at oversold territories, forming a golden cross
- The Relative Strength Index is also extremely oversold
- While the Moving Average Convergence Divergence (MACD) demonstrates huge bearish histograms, it's important to note that the MACD lags compared to the other two indicators.

What We Believe

In summary, we could expect a technical bounce at current levels, based on the overall trend, and the significant support levels we have identified.

Trade Safe.