After bottoming out at $168 last week, Ethereum price quickly rebounded and peaked at $184. After trading sideways for a day and testing the $180 support, ETH/USD played a bear trap by dipping to $176 then quickly rebounding to $180. Let’s take a look at today’s Ethereum news and see if the charts tell us anything.
When it comes to Ethereum news, there are no big developments today. The Ethereum community is gearing up for the ETH 2.0 network update and will showcase some of its potential at Devcon in Germany November 19th-20th. The Ethereum Foundation put out a developer experience survey which you can partake in regardless if you’re a developer or not.
Ethereum has been struggling with network congestion for quite some time now and if ETH 2.0 can solve the scalability issue, that will be a huge step for Ethereum and dApps running on the network. Moreover, I wouldn’t be surprised if Ethereum’s price skyrockets once the upgrade fully launches.
ETHEREUM PRICE ANALYSIS
Relative Strength Index: The RSI is currently at 59 points. It recently peaked at 65 which was a result of the rebound from the bear trap. At this point, the RSI will try to stay within range as we’ve seen previously. At the same time since the RSI is leaning on the high side, the market has plenty of strength to make another move.
Bollinger Bands: The price is currently above the upper band. This means that the market will try to retrace in the next few hours. If that doesn’t happen, the deviation of the bands will increase, causing the price to fall within range. It’s really just a game of cat and mouse.
Volume: There is a decent amount of trading volume at the time of writing. With the bear trap behind us I would expect the volume to decrease. However, keep in mind that a new week is starting and if Bitcoin makes any sudden moves, volume will increase.
ETHEREUM PRICE PREDICTION
In my previous Ethereum price prediction, I mentioned how ETH/USD will continue trading sideways but might test $180 a few more times.
“My prediction is that Ethereum will attempt to hold the current support at the $178 level. ETH/USD might touch $180 a few more times, but it’s going to be hard to establish support at that level.”
It looks like ETH only touched $180 once but it did have a hard time holding that support. Ethereum seems to like the $170 level which is where it will stay unless Bitcoin makes any sudden moves.
My prediction is that Ethereum will continue to trade sideways until Bitcoin wakes up. We have a new week ahead of us and crypto markets are ripe, I predict at least a 10% move in the next week.
Ethereum technical analysis: ETH/USD bearish flag subject to a potential breakout
- Ethereum price is trading in the red marginally, down 2.50% the session on Tuesday.
- ETH/USD is moving within consolidation mode within a bearish flag structure.
- Heavy supply can be observed at the $200 price market, where the price faced some rejection just a few sessions ago.
ETH/USD daily chart
Price action is moving within a bearish flag structure, subject to a potential breakout south.
ETH/USD 60-minute chart
Price action is being supported by an ascending trend line near-term via the 60-minute chart view, bears are testing it to the downside.
Spot rate: 186.07
Relative change: -2.50%
|Today last price||182.83|
|Today Daily Change||1.54|
|Today Daily Change %||0.85|
|Today daily open||181.29|
|Previous Daily High||184.85|
|Previous Daily Low||178.89|
|Previous Weekly High||197.8|
|Previous Weekly Low||168.1|
|Previous Monthly High||224.69|
|Previous Monthly Low||152.51|
|Daily Fibonacci 38.2%||182.57|
|Daily Fibonacci 61.8%||181.16|
|Daily Pivot Point S1||178.5|
|Daily Pivot Point S2||175.71|
|Daily Pivot Point S3||172.54|
|Daily Pivot Point R1||184.46|
|Daily Pivot Point R2||187.64|
|Daily Pivot Point R3||190.43|
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Ethereum’s Bearish Wave Count Outlined by Cryptocurrency Analyst
Ethereum is the second-largest cryptocurrency when ranked by its market capitalization. It made headlines on Monday when its co-founder was spotted in the company of several Chinese investors and internet moguls. This could have been the reason for a nearly 10 percent increase in the price of the altcoin.
However, despite this price spike, Ethereum has been on a downward trend for the prior 110 days.
According to him, the price is ready to make a downward move towards $170.
While the short-term wave count seems correct, we want to look at the longer-term price action to decide the Ethereum price outlook and find a target for the end of the downward move.
Ethereum Wave Count
Looking at the price movement since Ethereum reached a low of $83 on December 7, 2018, we believe the ETH price has finished a five-wave upward move when it reached a high of $363 on June 26, 2019.
Since then, the Ethereum price has been trading inside of a descending wedge. The descending wedge is a bullish pattern, making a price breakout more likely. While inside its confines, ETH has either finished the final corrective C-wave or is very close to doing so.
However, it is also right at the resistance line of the pattern. Therefore, even though the wedge is a bullish pattern, we could definitely see an extension of the downward leg towards the support area if the price does not break out immediately.
When we look at the daily moving averages (MAs), the possibility of a breakout is greatly reduced.
The 100- and 200-day MAs have just made a bearish cross and are providing close resistance to the price.
A bullish cross between the two MAs occurred in May and preceded an increase of more than 100 percent.
The current bearish cross could very well be a precursor to a similar decrease. However, due to the support area outlined near $160 and the projected end of the wedge, we do not believe this decrease will have the same magnitude.
What Will Happen?
Looking at the four-hour chart to which @smartcontracter alluded to, we can see a short-term ascending support line. Combining it with the descending resistance line from the wedge, we get a symmetrical triangle which is projected to end in two days.
A decisive move should occur by that time.
Based on our long-term analysis, we agree with the statement made by @smartcontracter that the price is likely to initiate a downward move.
Ethereum’s price may be hit by a breach of the ascending channel
Ethereum noted a fall of 9.40% in the month of September, pulling the value of the coin from $204.80 to $185.54. However, October provided some relief after the price noted a rise of 9.82%, taking the price from $172.16 to $189.14. The second largest coin in the cryptocurrency market currently stands priced at $184.82, with a market cap of $19.98 billion.
However, the long-term chart has predicted that the rise could only be momentary and that the coin might note a fall.
Daily ETH chart
Source: ETH/USD on TradingView
The daily chart for Ethereum suggested the formation of an ascending channel. This channel, characterized by two upward sloping lines, marked the higher highs at $177.12, $183.85, and $200.98 and higher lows at $152.04, $168.56, and $176.51. According to the nature of the formed pattern, a breakout towards the downside may take place with its breach.
The moving average 50 lay under the moving average 100 for the 62nd consecutive day. The averages rested above the candlesticks, indicating a highly bearish market. Even though the MACD indicator suggests a bullish market, the reduced momentum implies that a reversal of trend could be possible.
The long-term chart for Ethereum points at a devaluation in the value of the coin, as it breaches out of the ascending channel.