Posted on Leave a comment

Ethereum analysis: Daily tf Chart Patterns and 3 Things You Must Know

Conclusion for today’s Ethereum technical analysis:

Key support for Ethereum lies between 123.87 and 139.31. A break below 123.87 implies more selling ahead…

The Daily timeframe chart is used in today’s Ethereum analysis (log scale) to provide the alternatives for future price action.

The previous uptrend in Ethereum from December 2018 to June 2019 has been broken to the downside (i.e. confirmation or close of price outside of bullish channel) and price remaining in the current downtrend.

The following are 3 important ideas and/or areas to focus on for future development in Ethereum price.

Follow on Social Media!

Instagram: https://www.instagram.com/coin_analyst/
Twitter: https://twitter.com/Cryptotrader029

Ethereum price. Ethereum forecast

(1) Current falling wedge chart pattern (tentative): The downside motion of price from the June 25, 2019 peak to current date is captured using a falling wedge (or falling diagonal). Eventual resolution to the upside is anticipated i.e. a break above the upper boundary of the wedge.

This therefore presents a foundation for considering long positions from a conservative point of view with risk: reward ratios calculated accordingly before attempting a long (bullish) trade.

(2) Action of the 200 Day and 50 moving average: The 50 day moving average did cross below the 200 day moving average on September 4, 2019. This implies bearish sentiment in Ethereum is still active and reduces the chance of bullish momentum developing.

Price action at the minimum should therefore close above the 50 moving average before the potential for any bullish trade can be considered. Even better is a close above the 50 moving average and also its slope turning upwards.

(3) Support at 123.87 and 139.31: The support region is crucial for Ethereum and requires monitoring to see if price gives way to the downside or if there is consolidation at or close to the support region. The aforementioned support region also coinciding with the bottom of the falling wedge signifies the validity of the region as support.

A break below the lower boundary (123.87) reduces the chances of any bullish price swing developing and rather argues for more downside action in Ethereum. Momentum indicators can also provide additional guidance.

Above all, the best course of action is to wait to see what transpires before pulling the trigger (long or short).

Sign up now for more information on Ethereum analysis, and also instantly gain exclusive access to other cryptocurrencies, foreign exchange (FX) pairs, stocks, and ETF’s.

Our previous Bitcoin technical analysis before the current price rally was also posted for FREE and can be found here.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.