Skip to content Skip to sidebar Skip to footer

  • ETH price is down more than $30 in the past few days against the US Dollar.
  • The price even spiked below $150 and it is currently correcting higher.
  • There is a major breakout pattern forming with resistance near $152 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair is struggling to correct higher and it could resume its decline below $150.

Ethereum price is trading in a bearish zone below $155 and $160 against the US Dollar, similar to bitcoin. ETH price is likely to revisit $125 before it could recover.

Ethereum Price Weekly Analysis

This past week, Ethereum declined heavily after it broke the key $172 support against the US Dollar. ETH price traded below many key supports near the $170 and $165 levels.

Moreover, there was a break below the $150 support and the price settled well below the 100 simple moving average (4-hours). A new multi-month low was formed near $138 and the price recently corrected higher.

It broke the $145 and $150 resistance levels. Besides, Ethereum recovered above the 23.6% Fib retracement level of the downward move from the $177 high to $138 low.

However, the price seems to be facing a strong resistance near the $155 level. More importantly, there is a major breakout pattern forming with resistance near $152 on the 4-hours chart of ETH/USD.

Therefore, an upside break above the $152 and $155 levels might push the price higher. An immediate resistance is near the $158 level. It represents the 50% Fib retracement level of the downward move from the $177 high to $138 low.

The main resistance is near $160 and a connecting bearish trend line on the same chart. A clear break above the $155 and $160 resistance levels could start a decent recovery. In the mentioned case, the price could recover towards the $172 resistance.

On the downside, an immediate support is near the $150 level. If there is a downside break below the $150 support, the price is likely to retest $140.

Any further downsides may perhaps open the doors for a push towards the $132 and $130 support levels. The next major support is near the $125 level, where the bulls may emerge.

Ethereum Price Weekly Analysis

Ethereum Price

The above chart indicates that Ethereum price is under a lot of pressure below the $155 and $160 resistance levels. Overall, there are chances of more downsides below $150 and $140 in the near term.

Technical Indicators

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

4 hours RSI – The RSI for ETH/USD is currently recovering, but it is well below the 40 level.

Major Support Level – $140

Major Resistance Level – $160

Aayush Jindal , 2019-11-24 06:00:12

Source link

Leave a comment

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

Source link