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Despite the short term spike back above $150, Ethereum is showing signals to trade lower in the coming days as users await the Istanbul hard fork on December 7th 2019.

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ETH/USD targets $130 if bulls fail to break resistance

The price of ETH/USD has been in a sharp downtrend since hitting a yearly high of $360 at the end of June. Despite testing the resistance level of the bearish channel a couple of times, the latest on 18 Nov at $184, bulls are yet to take control of the market as witnessed in the first half of the year.

ETHUSD
ETH chart by TradingView

Trading at $153.88 USD, as at time of writing, ETH/USD bulls are struggling to keep the daily close above $153 USD, the minor support level. A break below the level spells doom for the pair signaling a drop towards the lower support levels at $140, $135 and $131 USD.

Volumes plummeting as bears strengthen grip on the market

The Istanbul hard fork is set to occur in a matter of days, bringing developmental upgrades to the Ethereum network as ETH 2.0 gets ever nearer. However, investors remain uninterested in the token as volumes traded continued to dwindle despite the hike in price in the past 72 hours.

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ETH chart source by TradingView

Looking closely at the hourly charts, the price bounced off the wedge support signaling a possible run-up to the upper resistance level at $156. However, the squeeze in volumes paints a dull picture. Can the bears push the price towards the

Istanbul hardfork miracles?

As is with other contentious hard forks, investors panic buy the token in hopes of an extra token if the chain splits. While no rush is yet to be seen on Ethereum on the upcoming Istanbul hard fork, the next week may provide a chance for buyers to fill their bags before the event.

If ETH/USD breaks above the resistance on the hourly charts, the price may well spike towards the $200 mark. Can bulls make it possible?

Summary

Ethereum Analysis: ETH/USD on the Edge as Drop to $130 USD a Possibility

Article Name

Ethereum Analysis: ETH/USD on the Edge as Drop to $130 USD a Possibility

Description

Despite the short term spike back above $150, Ethereum is showing signals to trade lower in the coming days as users await the Istanbul hard fork on December 7th 2019.

Author

Lujan Odera

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Coingape

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cryptocoach

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Lujan Odera , 2019-11-30 16:22:36 ,

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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

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