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Ethereum (ETH) Holding Crucial Support While Bitcoin Is Declining

  • Ethereum price is still struggling to climb above $186, $188 and $190 resistances against the US Dollar.
  • The price is currently declining and it seems like it could retest the $180 support area.
  • There are two major bearish trend lines forming with resistance near $186 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin is under a lot of pressure and it recently decline below the $8,500 support.

Ethereum price is holding an important support versus the US Dollar, while climbing vs bitcoin. ETH price might retest the $180 or $178 support area in the near term.

Ethereum Price Analysis

Recently, Ethereum found a strong buying interest near the $178 level against the US Dollar. As a result, ETH price started an upward move above the $180 and $182 levels.

Moreover, the price broke the $185 resistance and the 100 hourly simple moving average. However, the upward move was capped by the $186 resistance area. A high was formed near $186 and the price is currently correcting lower.

It broke the 23.6% Fib retracement level of the recent wave from the $177 low to $186 high. At the moment, the price is trading near the $184 level and the 100 hourly simple moving average.

An immediate support is near the $182 level. Besides, the 50% Fib retracement level of the recent wave from the $177 low to $186 high is also near the $182 level. The main support is near the $180 level, below which the price is likely to revisit the $178 support area.

On the upside, Ethereum price is still struggling to climb above $186, $188 and $190 resistances. More importantly, there are two major bearish trend lines forming with resistance near $186 on the hourly chart of ETH/USD.

If there is a clear break above both the trend lines, the price is likely to make an attempt to surpass the $188 resistance area. Having said that, a clear break and close above the $190 resistance is needed for a sustained move higher in the near term.

Looking at the chart, Ethereum price is somehow holding the $180 and $178 levels. On the other hand, bitcoin is declining and it even traded below the $8,500 support level. Therefore, there are high chances of a decent upward move as long as ETH price is trading above the $180 and $178 support levels.

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 gaining bearish momentum and is well below the 50 level.

Major Support Level – $180

Major Resistance Level – $186

The post Ethereum (ETH) Holding Crucial Support While Bitcoin Is Declining appeared first on NewsBTC.

NewsBTC , 2019-11-18 03:08:15 ,

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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.

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

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