Significant Pullback Occurs as ETHUSD Becomes Overbought

A significant pullback occurs as ETHUSD becomes overbought. ETHUSD had a significant upswing following its test of $1530.00 support, which caused a paradigm shift in the market’s dynamics in a positive direction. The current market trend was established as a result of this rise. Driven by purchasing pressure from the $1530.00 demand zone, a swing high and swing low appeared at $2140.00 and $1910.00, respectively. The price’s response to a bullish order block led to the establishment of the $1910.00 low.

 

In an attempt by the market to break out from the resistance at $1875.00, the bullish order block was established. The market stabilized as 2023 drew to a close, leading to a sell-side liquidity grab. As 2024 rolled around, there was a noticeable return to bullishness in the market. Currently, the market is seeing a significant retracement following the formation of a high at $2718.00.

ETH Major Levels

Demand Levels: $1875.000, $1755.000, $1530.000
Supply Levels: $2530.000, $2750.000, $3000.00

Indicators Analysis

The Stochastic Oscillator showed that the market was overbought before the current pullback. Nonetheless, the MA Cross indicates that the overall trend of the market is still positive. The bullish trend is therefore likely to resume once the oversold state is reached, according to the Stochastic Oscillator.

Learn from market wizards: Books to take your trading to the next level

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Ltd. ADVFN Ltd does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Tor FX

• 

  Ben Branson

• 

  Dan Atkinson

• 

  Zak Mir