Ethereum (ETH) Trend Undecided, Technical Indicators Remain Mixed
3 min readTable of Contents
Ethereum (ETH) has made an attempt at moving upwards past resistance, but failure caused the price to retrace almost completely.
Even though some technical indicators are bullish, a breakout from the current resistance area is required for the trend to flip bullish.
Ethereum Trading Range
The Ethereum price has been decreasing since Sept 1, when it reached a high of $489.57. The decrease continued until it reached a low of $311.04 on Sept 5. The low initiated an upward move which was relatively short-lived since ETH was rejected after reaching $394.
Currently, ETH is stuck in a range between $315-$380. A breakdown from the support area could trigger a rapid decrease towards $240, while a breakout above the resistance area would likely cause the price to move towards the 0.618 Fib level at $420.
Technical indicators provide a very mixed outlook;
- The MACD is increasing and has generated bullish divergence, but is nowhere close to positive territory
- The RSI has failed to generate bullish divergence and is trading below 50
- The stochastic oscillator has made a bullish cross and is increasing
While this might not be unusual since the price is consolidating, it shows that the daily time-frame is not sufficient in determining the direction of the next movement.
The weekly chart is still bullish, despite the bearish engulfing candlestick created during the week of Aug 31- Sept 7.
The price is still following an ascending support line and has created long lower wicks at the 0.382 Fib level of the entire increase — a sign of buying pressure.
Short-Term Movement
Cryptocurrency trader @ACXTrades outlined an Ethereum chart with a short target of $333.
Since the tweet, the price has already begun to decrease and is approaching the $335 minor support area.
The decrease was preceded by bearish divergence in both the RSI and MACD.
Wave Count
The most likely count suggests that the price began an A-B-C corrective formation (shown in black below). with the March 3 low, and is currently in the fifth sub-wave (blue) of wave C.
Based on the length of the previous movements, the wave could end near $545.
If the count is correct, then ETH has begun a new upward move has completed waves 1 and 2 (in blue below).
A decrease below the wave 2 low of $313.29 would invalidate this particular wave count, while a decrease below the Sept 5 low of $308.42 would invalidate the bullish scenario.
Alternate Count
An alternate wave count suggests that ETH has completed its upward move and began a bearish impulse (shown in red below) on Sept 2.
The issue with this count is that wave 5 (outlined) does not look like an impulse but rather an A-B-C formation, making this count unlikely.
The bearish count would be invalidated with an increase above the Sept 17 high of $390, while its sub-wave count would be invalidated with an increase above the Oct 1 high of $368.1.
ETH/BTC
The ETH/BTC chart shows movement relatively similar to its USD counterpart. The price has broken out from a descending resistance line in place since the Sept 1 high but failed to increase significantly after doing so.
Currently, the price is approaching the ₿0.0315 support area, with the main resistance levels being found at ₿0.0333 and ₿.036.
Technical indicators are neutral/bearish, and a bullish cross in the stochastic oscillator is seemingly getting rejected.
Therefore, there is not sufficient evidence to determine the direction of the future trend.
For BeInCrypto’s Bitcoin analysis, click here!
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.
The post Ethereum (ETH) Trend Undecided, Technical Indicators Remain Mixed appeared first on BeInCrypto.