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  • Ethereum is currently correcting higher from the $172 support against the US Dollar.
  • Bitcoin price is also correcting higher, but it is likely to face resistance near $8,250.
  • There was a break above a declining channel with resistance near $175 on the hourly chart of ETH/USD (data feed via Kraken).
  • The price is facing a lot of hurdles on the upside near $178 and $180.

Ethereum price is attempting an upside correction versus the US Dollar, similar to bitcoin. However, ETH bears remain in control as long as the price is below $185.

Ethereum Price Analysis

This week, we saw a major downside break in Ethereum below the $180 and $178 supports against the US Dollar. ETH price even settled below the $180 level and the 100 hourly simple moving average.

Finally, there was a break below the $175 support and the price tested the $172 area. A new monthly low was formed near $172 and the price is currently correcting higher. It surpassed the $175 resistance area.

Additionally, there was a break above the 23.6% Fib retracement level of the downward move from the $186 high to $172 low. More importantly, there was a break above a declining channel with resistance near $175 on the hourly chart of ETH/USD.

An immediate resistance on the upside is near the $178 zone (the recent breakdown support area). The main resistance on the upside for Ethereum is near the $180 level and the 100 hourly simple moving average.

Besides, the 50% Fib retracement level of the downward move from the $186 high to $172 low is also near the $180 area. Therefore, an upside break above the $180 resistance may perhaps decrease the current selling pressure.

To move into a positive zone and start a strong rise, the price must break the $185 resistance zone and both bearish trend lines. On the downside, the $175 level could provide support.

The key support is now near the recent low at $172. If there is a downside break below the $172 level, the price is likely to start another major decline towards the $166 and $160 levels in the near term.

Ethereum Price

Ethereum Price

Looking at the chart, Ethereum price is attempting an upside correction above the $175 level. Having said that, the bears are still in control as long as the price is trading below $178 and $180. On the downside, they might be looking for a break below the $170 zone.

ETH Technical Indicators

Hourly MACDThe MACD for ETH/USD is currently gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently moving higher and is above the 50 level.

Major Support Level – $172

Major Resistance Level – $180

Aayush Jindal , 2019-11-20 03:08:31

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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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