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  • ETH price is facing a strong resistance near the $184 and $185 levels against the US Dollar.
  • The price is trading above the key $178 support, which remains at a risk.
  • There is a crucial bearish trend line forming with resistance near $186 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair is currently declining and it might struggle to clear the $178 and $176 support levels.

Ethereum price is showing bearish signs below $185 against the US Dollar, similar to bitcoin. ETH price remains at a risk of a downside break below the $176 support area.

Ethereum Price Weekly Analysis

This past week, Ethereum retested the key $190 resistance area against the US Dollar. However, ETH price failed to continue higher, resulting in a fresh decline below the $188 support area.

Moreover, there was a break below the key $186 support area. Finally, there was a close below the $184 support and the 100 simple moving average (4-hours). The bears gained pace below the $180 level and a low was formed near the $177 level.

It seems like the $176-$178 support area is playing a crucial role for the bulls. Recently, there was an upside correction above the $180 level. Furthermore, there was a break above the 23.6% Fib retracement level of the downward move from the $190 swing high to $177 low.

On the upside, Ethereum price seems to be facing a strong resistance near the $184 level and the 100 SMA. The 50% Fib retracement level of the downward move from the $190 swing high to $177 low is also near the $184 level.

More importantly, there is a crucial bearish trend line forming with resistance near $186 on the 4-hours chart of ETH/USD. Therefore, the price is likely to face a strong resistance, starting with $184 and up to $186.

Having said that, the price must settle above the $188 and $190 resistance levels to move into a positive zone. The next key resistances are near the $200 and $205 levels.

On the downside, there are many key supports near the $178 and $176 levels. If there is a daily close below the $176 support, the price could decline heavily. The next major support are near the $165 and $160 levels.

Ethereum Price

Ethereum Price

The above chart indicates that Ethereum price is clearly declining towards the $176 support area. Thus, it might either recover nicely above $185 or extend its decline towards $165.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly moving into the bearish zone.

4 hours RSI – The RSI for ETH/USD is currently below the 50 level, with a bearish angle.

Major Support Level – $176

Major Resistance Level – $188

Aayush Jindal , 2019-11-17 06:00:56

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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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