Ethereum Technical Analysis – October 17, 2019

Ethereum Technical Analysis – October 17, 2019

The Ethereum (ETH) inched higher on Thursday, increasing the price to more than 171.0. The price increases after a major economic release with respect to the retail sales control group. The technical bias might remain bearish because the price of the digital currency marked a higher low in the last upside move. 

As of this writing, the pair is being traded around 171.3, the price is likely to hit resistance around 186.7, the confluence of a major horizontal and trend line resistance ahead of 253.6, the 38.2% Fib level resistance and then  317.6, the trend line resistance as shown in the graph below. 

Ethereum

Coming towards the downside, a support can be seen around 153.3, the trend line support ahead of 130.0, another trend line support which may prevent the price from falling below this level. Another support level stands next around 78.8, the low of Dec 12, 2018, as shown in the graph above. The technical bias may remain bearish as long as 186.7, the confluence of a major horizontal and trend line resistance remains intact.

US Retail Sales Control Group Release

The US Census Bureau has recently released stats concerning the retail sales control group. The figure remained 0.0% in September, as compared to 0.3% during the month before, down beating the economists’ expectation which was 0.3%. This figure included the net amount of sales made by the retail sector which is then used for the preparation of estimates PCE for numerous goods. Generally speaking a higher reading in this regard is considered bullish for the digital currency whereas a low reading implies a bearish trend for the digital asset respectively. 

Conclusion

Considering the price behavior of the Ethereum over the past few days, selling it around the current level might a good decision in the short to medium term. Taking a long term position in this scenario might not work 

By Desislava Yunakova
Desi was one of our financial journalist trainee, someone who's now moved on to be a Strategic Analyst at Whirlpool.
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