Given the latest bear market that we’re ter, it’s best to begin off this analysis with an overview of the ETH/BTC chart to get an idea of how resilient it’s bot to BTC’s downward movements.
Looking at Ethereum’s ether on the 8-hour chart, you can tell by the smaller crimson candles that volatility has minimized. Spil you can see from the overall chart, Ethereum’s ether has appreciated significantly ter relation to bitcoin.
From the chart, it looks like wij can anticipate several more periods of sideways movement. This means that the price of ether relative to that of bitcoin should be expected to remain stable overheen the next few days. Thus, if bitcoin rises ter its USD price, so will ETH. If it drops, so will ETH. However, ETH’s drops may be somewhat more significant percentage-wise than BTC.
It’s significant to note that crimson candles on this chart do not necessarily mean that ETH’s USD value is decreasing. Here’s the USD chart for ETH to give a better idea of what I mean:
Now, let’s evaluate the price act for ETH (USD) overheen the last few days with some of our indicators to get a better idea of how it’s moving.
We’re going to have to take some of thesis technical indicators with a grain of salt right because there’s a loterijlot of general instability and scare present te the market at the ogenblik.
Spil you can see from this chart, ETH has continued to trade within the zone that’s marked out by the two orange lines that have bot drawn on this chart. Spil a general rule of thumb, such channels are usually prequels to a continuation te the trend (uptrend).
However, if ETH fails to pauze past the higher orange line ($1379), then it may be setting up to form a pennant. If it fails to pauze out of either of thesis trends and the price cracks south of the lower orange line, then a much sharper price correction could be imminent for ETH. This would also signal a trend reversal from up to down. ETH is still technically ter its uptrend.
So What Will ETH Do?
The author anticipates the price will pauze south of that lower orange line (resistance), resulting ter a trend reversal.
Because of the volume.
Spil a rule of thumb, if you see the volume decreasing while the price is enhancing, you shouldn’t expect the price bumps to be sustained te any way. A drawdown from the price that ETH is at presently could lightly send it southbound fairly some distance. It’s bot losing ground againt BTC spil wij eyed te the very first two charts, so even a reversal te BTC’s fortunes (which the author does not anticipate) wouldn’t preclude a acute correction for ETH.
So Where Can Wij Expect Price to Go?
For this estimate, the best guess can be made by drawing some Fibonacci levels.
Wij can see it bounced off after a 50 procent retracement. However, ter order to see whether it will trace one or two levels down, wij will refer to the other indicators to get a better idea of movement. Recall, this is the 8-hour chart.
Williams’ Alligator’s position relative to the price makes the author feel spil this coin is going to proceed to go down te price. Wij don’t see it spil having enough volume behind to truly trigger a signal on the Williams’ without it decreasing shortly following this.
Once again, please note that the volume has bot decreasing, which means that when the volume does increase again (and it will at some point), prices usually proceed their short-term trend. Presently, for ETH this is a downtrend.
I Thought You Said it Wasgoed Te An Uptrend?
Overall, yes. Technically, BTC just broke it’s downtrend when it dropped below $9,000. However, there’s also a short-term trend that is the measurable trend te the last two weeks or so te cryptocurrency.
Accumulation is still high. Normally this is good when it occurs at the same time with a decrease ter price activity because it confers the idea that investors are sticking to their ‘guns.’ However, this hurts ter many cases because it shows that the influence of ‘panic selling’ has not affected the coin.
Basically what is meant is that the fact that there are a lotsbestemming of holders of Ethereum means that the propensity for their to be a massive ‘dump’ of the coin raises. From what wij’ve seen, individuals have bot much more bullish on BTC than ETH. This is also overduidelijk by its appreciation te BTC overheen the last few weeks.
The orange line you see above is the EMA-200 for Ethereum. If the price cracks down below that, then you can expect to see a steeper druppel. From what I’m looking at that’s bot charted so far, I think it’s fairly realistic if not very probable that such an event occurs, thus triggering further price act southward from that point.
The Bollinger’s shows the correction of the price from the outside headed upward. This, ter conjunction with the fact that the price has bounced off the 50 procent retracement level with relative weakness makes the author truly think that ETH is headed down very soon.
Overall, the author expects there to be very strong price act ter the coming days when the volume picks back up that will send the price down to $634, and is very bearish on all cryptocurrencies. Wij think the lull ter any news/updates/information that would drive the price of cryptocurrency upward on top of the fact that Ethereum is still ter the midst of a greater retrace presently will both be the catalysts of this price drawdown to $634.
Before that happens it is plausible that the price (USD) resumes to appreciate up to $100 or more very first. Only a loser would inject the market te a long position from this point tho’.