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  • Ethereum is currently consolidating losses above the $172 support against the US Dollar.
  • Bitcoin price is also consolidating above the key $8,000 support area.
  • There is a new connecting bearish trend line forming with resistance near $176 on the hourly chart of ETH/USD (data feed via Kraken).
  • The price is likely to continue lower as long as it is below the $180 resistance.

Ethereum price is showing signs of bearish continuation versus the US Dollar, similar to bitcoin. ETH bears seem to be eyeing a test of $164 or even $160.

Ethereum Price Analysis

Recently, there was a downside break in Ethereum below the $180 support against the US Dollar. Moreover, ETH price settled below the $178 support and the 100 hourly simple moving average.

Later, it found support near the $172 level and started an upside correction. There was a break above the $175 resistance area. However, the upward move was capped by the $177-$178 resistance area.

Additionally, the price failed to stay above the 23.6% Fib retracement level of the last key decline from the $186 high to $172 low. At the outset, the price is consolidating above the $172 support and facing many hurdles near $176.

More importantly, there is a new connecting bearish trend line forming with resistance near $176 on the hourly chart of ETH/USD. Above the trend line resistance, the 100 hourly simple moving average is near the $178 level to act as a resistance.

Besides, the main resistance is near the $180 level. It coincides with the 50% Fib retracement level of the last key decline from the $186 high to $172 low. Therefore, Ethereum price must break the $178 and $180 resistance levels to start a decent recovery.

Conversely, the price could struggle to recover and continue lower below $172. If there is a downside break below the $172 support, the price is likely to accelerate lower towards the $166 and $164 support levels.

The main support is near the $160 area, where the bulls are likely to take a stand. Any further losses may perhaps push the price towards the $154 level.

Ethereum Price

Ethereum Price

Looking at the chart, Ethereum price is showing a lot of bearish signs below the $178 and $180 resistance levels. Therefore, there remains a risk of more downsides below the $172 support area. Only a close above $180 might negate the bearish view and start a decent recovery in the near term.

ETH Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is currently struggling to settle above the 50 level.

Major Support Level – $172

Major Resistance Level – $180

Aayush Jindal , 2019-11-21 03:08:45

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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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