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  • Ethereum price is struggling to climb higher above the $188 resistance against the US Dollar.
  • The price is currently trading near the $182 support area, which holds the key.
  • There is a key bearish trend line forming with resistance near $185 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin is declining and is struggling to stay above the $8,500 support area.

Ethereum price is facing a fresh round of selling versus the US Dollar, similar to bitcoin. ETH price remains at a risk of more downsides if it breaks the $180-$182 support zone.

Ethereum Price Analysis

This week, we mostly saw range moves in Ethereum above the $180 and $182 supports against the US Dollar. Recently, ETH made an attempt to climb above the $188 and $190 resistance levels, but it failed.

A high was formed near $190 and the price started a fresh decline. It broke the $186 support level to move lower towards the range support area. Moreover, there was a break below the $185 level and the 100 hourly simple moving average.

It opened the doors for more losses and the price is now trading near the $182 support area. The range support near the $180 and $182 levels holds a lot of importance. If Ethereum fails to stay above the $180 support area, there are chances of a sharp breakdown.

The next key supports are near the $175 and $172 levels. On the upside, an initial resistance is near the $184 level. Besides, the 23.6% Fib retracement level of the recent decline from the $190 high to $182 low is also near $184.

More importantly, there is a key bearish trend line forming with resistance near $185 on the hourly chart of ETH/USD. Above the trend line, the price could correct higher towards the $186 resistance.

Additionally, the 50% Fib retracement level of the recent decline from the $190 high to $182 low is near the $186 level to act as a resistance. Therefore, a close above the $186 level and the 100 hourly SMA is needed to avoid a bearish break below the $180 support area.

Ethereum Price

Ethereum Price

Looking at the chart, Ethereum price is clearly trading near the last line of defense at $182 and $180. If the bulls fail to defend the $180 support, the price is likely to accelerate lower by 5%-10%. On the upside, there are many resistances such as $186, $188 and $190.

ETH Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is currently declining and approaching the 30 level.

Major Support Level – $180

Major Resistance Level – $186

Aayush Jindal , 2019-11-15 03:08:09

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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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