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  • Ethereum price is declining below the key $180 support against the US Dollar.
  • Bitcoin price is down more than 2% and it also broke the $8,200 support area.
  • Yesterday’s bearish trend lines are intact with resistance near $185 on the hourly chart of ETH/USD (data feed via Kraken).
  • The price is currently flirting with the $178 support and it is likely to continue lower.

Ethereum price is breaking down versus the US Dollar, similar to bitcoin. ETH price is likely to accelerate its decline towards the $170 and $166 support levels.

Ethereum Price Analysis

Recently, Ethereum failed to surpass the $186 resistance area against the US Dollar. As a result, ETH price a fresh decline below the $182 support level. Moreover, the price broke the $180 support and settled below the 100 hourly simple moving average.

The recent decline was such that the price even broke the main $178 support area. A new monthly low was formed near $174 and the price is currently correcting higher.

It is trading near the $178 pivot area. Besides, Ethereum is trading near the 23.6% Fib retracement level of the recent decline from the $186 high to $174 low. On the upside, there are many resistances near the $180 zone (the previous support).

Additionally, the 50% Fib retracement level of the recent decline from the $186 high to $174 low is also near the $180 level. More importantly, yesterday’s bearish trend lines are intact with resistance near $185 on the hourly chart of ETH/USD.

An intermediate resistance is near $182 and the 100 hourly simple moving average. Therefore, the price seems to be facing a strong resistance near the $180, $182 and $185 levels.

A successful break above the $185 resistance is must for a decent recovery. On the downside, an initial support is near the $175 area. If the bears gain momentum below $175, there is a risk of a downside extension below the $170 support.

The next key support is near the $166 level, below which the bears are likely to eye a test of the $154 and $152 support levels in the near term.

Ethereum Price

Ethereum Price

Looking at the chart, Ethereum price is clearly flirting with the $178 support and it is likely to continue lower. If there is another break down below the $175 level, the price could really struggle to bounce back. On the upside, the bulls are facing many hurdles, starting with $182 and up to $185.

ETH Technical Indicators

Hourly MACDThe MACD for ETH/USD is currently losing pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently correcting higher from the oversold readings.

Major Support Level – $175

Major Resistance Level – $185

Aayush Jindal , 2019-11-19 03:08:59

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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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