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  • Ethereum is still facing resistance near the $155 and $156 levels levels against the US Dollar.
  • The price is likely to make a sustained move higher once it breaks the $156 resistance.
  • There is a key declining channel forming or a bullish flag with resistance near $154 on the hourly chart of ETH/USD (data feed via Kraken).
  • The price could start a fresh decline only if it settles below the $142 support area.

Ethereum price is consolidating gains above key supports versus the US Dollar, similar to bitcoin. ETH price could rally towards $165 once it clears the $156 resistance.

Ethereum Price Analysis

Yesterday, there was an upside extension of the recovery initiated from $132 in Ethereum against the US Dollar. ETH price climbed above the key $150 resistance and the 100 hourly simple moving average.

Moreover, the price broke the $152 resistance and tested the next key resistance area near the $155 level. A high was formed near the $156 level and the price is currently consolidating gains.

It corrected below the $152 level. Besides, there was a push below the 23.6% Fib retracement level of the recovery wave from the $142 low to $156 high. At the moment, the price seems to be holding the $150 support and the 100 hourly simple moving average.

On the upside, there is a strong resistance forming for Ethereum near the $155 and $156 levels. Additionally, there is a key declining channel forming or a bullish flag with resistance near $154 on the hourly chart of ETH/USD.

Therefore, an upside break above the $155 and $156 resistance levels could push the price further higher. It is likely to make a sustained move higher towards the $165 resistance.

Conversely, the price could continue to correct gains below $150. An initial support is near the $148 level. It represents the 50% Fib retracement level of the recovery wave from the $142 low to $156 high.

The main support on the downside is near the $142 level. If the price closes below the $142 support, it is likely to move back into a bearish zone towards the $132 level.

Ethereum Price

Ethereum Price

Looking at the chart, Ethereum price is still trading above many key supports such as $150, $148 and $142. As long as there is no close below $142, there are high chances of a nice upward move above the $155 and $156 resistances in the near term.

ETH Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently near the 50 level and it could bounce back.

Major Support Level – $148

Major Resistance Level – $155

Aayush Jindal , 2019-11-29 05:08:45

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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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