Ethereum (ETH) has been standing at the helm of the recent upwards momentum incurred by the aggregated crypto market, and it has been able to extend its momentum in spite of Bitcoin erasing much of its recent gains during an overnight drop.
This bullishness has allowed ETH to decisively break above $200, which will likely prove to be a key support level in the near term, and any continued bullishness amongst altcoins will likely allow Ethereum to post significantly further gains in the coming days and weeks.
Ethereum Surges Past $200 as Bulls Roar
This upwards momentum was first sparked earlier this month when ETH dipped below $170, which was met with strong buying pressure that allowed the cryptocurrency to begin its upwards ascent that has since pushed it past $200.
In the near-term, it is highly probable that Ethereum will continue expressing further bullishness, as it has been rising in the face of downwards pressure on Bitcoin, which has begun to see its dominance over the crypto markets recede as altcoins begin moving upwards.
BigCheds, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that ETH is currently pushing up towards its 200-day moving average in the lower-$200 region, which may be where the crypto finds some resistance that slows its current ascent.
Will ETH Continue Pushing Higher?
Analysts do expect that Ethereum will continue climbing higher in the near-term, as Trading Room – a popular crypto analyst group on Twitter – explained that ETH will likely touch between $209 and $219 before it begins slowing down.
“#ethereum is trending stronger. Expecting the strength to continue. Don’t short randomly. Wait for the range high to establish and local top formation. Ignore the Short Zone from yesterday. Considering the strong move, expecting 209-219 before any major cool down,” they noted.
It does appear that Ethereum is moving independently of Bitcoin in the near-term, and ETH’s short-term strength may ultimately allow other altcoins to climb higher.
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.