Skip to content Skip to sidebar Skip to footer

Ethereum’s price action has been closely tracking that of Bitcoin over the past several days and weeks, which has allowed ETH to climb slightly today as it begins consolidating within the mid-$180 region.

One prominent analyst is now noting that he anticipates ETH to see an upside break in the near-term, which could lead it surging up to its strongest near-term resistance level that currently exists at $200.

Ethereum Enters Consolidation Phase in Mid-$180 Region 

At the time of writing, Ethereum is trading up just under 2% at its current price of $186.90, which marks a decent climb from its daily lows of $182.

ETH’s recent upwards momentum has allowed it to climb significantly from its multi-day lows of under-$180 that were set alongside Bitcoin’s recent drop to $8,300, and it is highly probable that Ethereum’s close correlation to BTC will continue in the near-future as bulls attempt to push it past its near-term resistance at $8,700.

Assuming that Ethereum is able to continue climbing higher as the weekend wraps up, it is highly probable that $190 will be its immediate resistance level, as it had been struggling to break above this level for over a week in the time prior to its recent dip to $180.

One factor that may play into ETH’s near-term price action is that its 24-hour trading volume has dived nearly 50% according to data from TokenAnalyst.

“24H #ETH Network Stats: Price: $181.69 (-0.0%). $ETH On-Chain Volume: $170M (-47.5%). Active Senders: 189K (-9.3%). Active Recipients: 81K (-14.1%),” the analytics group noted in a recent tweet.

Analyst: ETH May Soon See Upside Break 

In spite of the declining trading volume, it is important to note that Nik Patel, a popular cryptocurrency analyst on Twitter, explained in a recent blog post that he anticipates Ethereum to continue trading sideways for some time before eventually incurring an upwards break that could send it past its strong resistance at $200.

“Looking at ETH/USD, there really isn’t much to say: price remains compressed in a tight range between the 360-day moving average and $200 resistance. I am expecting a breakout to the upside shortly, after which I will look at potential long position entries,” he explained.

If ETH is to incur an upside break in the near-term, it is imperative that Bitcoin either stabilizes and trades sideways, or begins incurring some upwards momentum, as any further BTC downside will likely negatively impact Ethereum.

Featured image from Shutterstock.

Cole Petersen , 2019-11-17 21:30:42

Source link

Leave a comment

NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

Source link