- Ethereum dropped below $240 again and it’s at risk of losing the daily 12-EMA.
- ETH/USD is reacting negatively to the rejection at $250 on June 10 but it’s not game over just yet.
Ethereum is clearly seeing a shift in momentum after the rejection we saw yesterday on June 10. The second-ranked cryptocurrency attempted to break $250 again and had a minor rejection that is getting a ton of continuation today. The daily 12-EMA is set at $239 at the time of writing and the bulls are trying to defend it.
Unfortunately, below the 12-EMA there is not a lot of support for Ethereum. The nearest resistance area can be found between $237.67 and $237.25 where the previous hourly and 4-hour lows are converging. The daily Fibonacci 161.8% is also there. Below that, Ethereum doesn’t have a lot of support besides the daily 26-EMA at $228.49.
On the upside, Ethereum encounters a few resistance points starting with the 15-minutes SMA 5 at $239.32. Another resistance level can be found at $240 where the lower Bollinger Band on the 4-hour chart is set.
The key levels on its way down are at $238.86 and $235.38. Resistance key levels are set at $251 and $250 psychological level, as well as, $254.99 and $259.58.
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacent price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.