Conclusion for today's Ethereum Analysis: A break above ~196.88 is required as a minimum to consider any bullish position(s) in Ethereum.
Ethereum Analysis for today is presented on a log scale on the Daily timeframe. Price action from December 17, 2019 shows an overall upswing, followed by a bearish trend since June 25, 2019.
Three crucial points to keep in mind that provide context for Ethereum’s future price development are the following:
(1) Falling Wedge chart pattern: Part of the establishment of the falling wedge includes a break below the previous bullish price channel that lasted over 7 months. The falling wedge is currently active, but eventually implies a bullish breakout for Ethereum.
(2) 200 Day moving average: A break below the 200 day moving average on September 22, 2019 is bearish for Ethereum and price has traded under the average ever since then. Added confirmation of more momentum to the downside involves the 200 day moving average slope changing from zero to negative.
In such a scenario, a break below the lower boundary of the wedge would be anticipated as opposed to an upside breakout (ideal implication of a falling or descending wedge).
(3) Price level between 196.88 and 153.02: The aforementioned price level is important to watch in Ethereum as price has already successfully tested the lower boundary of the range on September 24, and 27, 2019. Another successful test occurring on October 23, 2019 improves the chances of the 153.02 level offering support for the price of Ethereum.
Momentum indicators can also be used to used to provide added confirmation of potential support. The upper region of the boundary at ~196.88 is tentative. Price reaching 196.88 and failing to close above it could serve as a breeding ground for more selling.
Conservative strategies to buy Ethereum includes waiting for price to close above 196.88 and also Ethereum’s 200 day moving average.
Ethereum Analysis for today is presented on a log scale on the Daily timeframe. Price action from December 17, 2019 shows an overall upswing, followed by a bearish trend since June 25, 2019.
Three crucial points to keep in mind that provide context for Ethereum’s future price development are the following:
(1) Falling Wedge chart pattern: Part of the establishment of the falling wedge includes a break below the previous bullish price channel that lasted over 7 months. The falling wedge is currently active, but eventually implies a bullish breakout for Ethereum.
(2) 200 Day moving average: A break below the 200 day moving average on September 22, 2019 is bearish for Ethereum and price has traded under the average ever since then. Added confirmation of more momentum to the downside involves the 200 day moving average slope changing from zero to negative.
In such a scenario, a break below the lower boundary of the wedge would be anticipated as opposed to an upside breakout (ideal implication of a falling or descending wedge).
(3) Price level between 196.88 and 153.02: The aforementioned price level is important to watch in Ethereum as price has already successfully tested the lower boundary of the range on September 24, and 27, 2019. Another successful test occurring on October 23, 2019 improves the chances of the 153.02 level offering support for the price of Ethereum.
Momentum indicators can also be used to used to provide added confirmation of potential support. The upper region of the boundary at ~196.88 is tentative. Price reaching 196.88 and failing to close above it could serve as a breeding ground for more selling.
Conservative strategies to buy Ethereum includes waiting for price to close above 196.88 and also Ethereum’s 200 day moving average.
