Ethereum is having some market movement, currently trading at $182.3 with the price dropping by about 2.43% in the past 24 hours, indicating a descending channel.
In a short term Ethereum has seen bullish price action and that makes traders hope to break past the descending channel. ETH/USD weekly chart ran into the 61.8% Fib retracement level on Wednesday.
There is a strong resistance at the $194.43 mark and we saw a short-lived break past it, but it was soon reversed as the 4-hour candle closed below the resistance and this bearish continuation is expected to go down the descending channel.
Crypto experts are not bullish on Ethereum because there is a high possibility that the price may slip lower than $180. The next decline from here could be a quick one and we might see the price decline below $150 to find temporary support potentially around the $145 mark.
Trends indicate that the price may decline further to reach the bottom of the descending channel. On the other hand, if we see the descending channel break, we would be looking at a rally towards $250 from here. The altcoin ran into SMA-200 and simultaneously the 42% Fib retracement level from the recent top. It faced a strong rejection there which gives us reason to expect further upside from here.
We may see Ethereum’s dominance continue to slip towards the end of 2020. Altcoins may continue to decline aggressively further than Bitcoin, as they have in 2018 during periods of downtrend. Many traders are used to riding an altcoin pump. However, a correction is now long overdue.
Although the price has pulled back from $194, the 12-period exponential moving average remains above the 26 EMA and the price appears set to revisit the moving average of the Bollinger Band indicator at $187.
The Stochastic Relative Strength Index (RSI) has turned down from 68, quickly approaching bearish territory. There is also an impending bear cross on the moving average confluence divergence. This suggests that the price could fall further to the support at $182, a point which is also held up by a high volume node on the volume profile visible range.
Traders looking to set up a long position might need to watch the daily chart as the price drops to the middle Bollinger Band at 0.0200 satoshis, a point which also aligns with the ascending trendline of the rising wedge pattern.
A drop below this trendline will likely lead to Ether price retesting at a region of strong underlying support at 0.01960 satoshis. A bounce off the lower ascending trendline of the rising wedge seems probable, and this brings Ether price close to the termination point of the pattern.
There is a dispute over the trend lines however, many crypto traders believe ascending triangles are bullish and lead to upside continuation, whereas rising wedges are bearish and if the entry begins from a downside break this increases the likelihood that price action will remain bearish upon completion of the wedge.
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