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After last week’s massive collapse where $20 billion worth of cryptos evaporated from the total market capitalization, bulls step in an attempt to hold the price above the support level.
Bitcoin is currently holding the $5,500 price level, and ETH is presently maintaining the $174 price level.
What we see is the most likely type of a temporary correction upward, in the middle of a broader downward trend direction. The market is still bearish.
Elliott wave’s analysis suggests that the decline is still not over yet and we expect to see another downward-going wave in the near future.
Looking at the 4 hours chart:
– ETH price is currently held above the 174$ support level with the three smaller EMA’s acting as close-range resistances (8/13/22 EMA’s on the following chart).
– We can notice a red “shooting star” candle (bearish candle formation) with a very long wick. The price hit the previous resistance at $178 and turned immediately turned back down.
– We should consider the possibility of another short move upward, as a “dead cat bounce” towards the 0.382 retracement level ($184) or even higher, towards the 0.5-0.618 Fibonacci retracement level ($190 resistance level) if the bulls will have enough strength against the bears, that are pushing the price lower.
– On the other hand, if the bears manage to push the price lower, in order to break the 168$ support level, the next target might be the $140-135 range.
– The RSI indicator is currently holding above 30 (4 hours chart) which signals that the bulls might get their chance to ‘fight’ and raise the price (a possible bullish sign).
– MACD histogram is ticking higher at the moment, with a positive crossover in the MACD’s averages.
ETH/USD BitStamp 4-Hours Chart
Cryptocurrency charts by TradingView. Technical analysis tools by Coinigy.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.