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Ethereum (ETH) has been closely tracking Bitcoin’s price action over the past several days and weeks, although it has been able to climb slightly today in spite of BTC’s bout of sideways trading around its current support level at $8,800.

Analysts are now noting that Ethereum needs to surge just over 5% from its current price levels before it reaches a point at which bulls are in firm control, and a failure to break above this near-term resistance level could signal that significantly further losses are inbound.

Ethereum Climbs Higher as Bitcoin Consolidates  

At the time of writing, Ethereum is trading up just under 3% at its current price of $189, which marks a slight climb from its daily lows of $184 that were set yesterday.

This climb has come about in the midst of a consolidation period for Bitcoin, which has been trading sideways around $8,800 in the time following its recent drop below its previous support level at $9,000 that occurred earlier this past week.

Currently, Ethereum appears to be finding support at its 360-day moving average, which may be what is behind its slight climb today.

Nik Patel, a popular cryptocurrency analyst on Twitter, spoke about this in a recent blog post, explaining that ETH is currently establishing this moving average as a support level, and that it is currently trapped beneath resistance at $200.

“Looking at ETH/USD, we can see that resistance at $200 remains very much intact and price continues to bounce between it and the 360-day moving average, which is currently holding as support,” he said.

Analyst: Close Above $200 Could Spark ETH Uptrend 

Currently, ETH is trading roughly 5% below its long-established resistance level at $200, which means that bulls could push the crypto to this level in one swift movement.

It is important to note that Patel further explained that he is waiting for ETH to close above $200 before he enters into any long positions, adding that a decisive close above this level could spark a fresh uptrend.

“I am patiently awaiting a daily close above $200 before I start looking for longs, and I fully expect this to be caused by movements in ETH/BTC over the coming weeks,” he noted.

How ETH trades against Bitcoin in the coming hours and days may offer significant insight into which direction Ethereum is going to trend in the coming weeks and months.

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Cole Petersen , 2019-11-10 21:30:21

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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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