After posting a brief high above the $10 handle, ETH-USD has slumped by almost 7% today losing around $0.70 from today’s open. The current price on the Kraken exchange is $9.45 and the chart below illustrates the long-term outlook using the 4-hour price action. The market has attempted to drive the price lower today, but buyers have forced ETH-USD back up toward the end of Tuesday’s trading. After three consecutive days of either higher lows or higher highs in price, the market has established a lower low in price compared to yesterday; this is significant as it tells us that the immediate trend is downward.
First, there is a strong indication of an extended downward move as the conversion (blue) line is starting to trend downward; a 4-hour close below the conversion line will give further confirmation and see the market test the $8 psychological level again. This level is aligned with the Ichimoku cloud which indicates a support zone. The conversion line is currently offering minor support at $9.3191 and if the market closes below the conversion line we should see the price action tend towards support provided by the Ichimoku cloud