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ETH/USD crypto signal - A bottom in the making - 02 Apr 2018

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Cryptocurrencies had a bad start to the year with the first quarter seeing significant declines. The price of Ethereum fell almost 46% on the quarter following a 142% gain in the previous quarter.

The declines came about amid a sudden change in sentiment. While cryptocurrencies posted strong gains just the previous quarter, it coincided at a time when the initial coin offerings saw a massive clampdown by various authorities bringing focus on the regulatory aspects of it.

At the same time, despite Bitcoin futures being launched, governments across the world started to condemn cryptocurrencies and focused on bringing in more regulation to cryptocurrency markets as well as some authorities chasing cryptocurrency trades by slapping them with taxes.

The overall negative sentiment on the cryptocurrencies saw prices across the board falling. This was especially noticeable in Bitcoin and Ethereum prices. While the declines have slowed in recent days, technically, the charts point to the fact that Ethereum prices may be posting a temporary bottom.

Following the decline to the main technical support level near the 400 - 307 mark Ethereum prices have been attempting to post a rebound. This falls in line with our previous commentary where we expected that the declines would stall at this technical level.

Therefore, the cryptocurrency signal of the day is ETHUSD. Price action is showing signs of posting a modest rebound but this can only be confirmed on a convincing close above the 400.00 mark.

It is ideal to go long on ETHUSD at 400.00 targeting the main resistance at 461.00 with stops at 360.00. We expect ETHUSD to potentially reverse the declines in the short term. The target of 461.00 marks the 61.8% Fibonacci level of retracement as well and validates this view.

crypto signal ethusd 02 apr 2018

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Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.