The Ethereum price began a rapid decrease once it reached a high of $278.26 on Feb. 24. Three days later, it reached a significant support line and bounced upward, making an attempt to reverse the trend.
Ethereum (ETH) Price Highlights
- The price is trading in a short-term range between $213-$231.
- The price is following an ascending support line.
- A golden cross has transpired.
- The price has created a double bottom.
- There is resistance at $248.
Let’s take a closer look at the Ethereum price movement and determine where it is heading to next. Note: This analysis will deal with the ETH/USD pair. For an ETH/BTC analysis, click here.$ETH
— George (@George1Trader) February 28, 2020
Clean retest of range low. Upside liquidity is next as long as blue holds imo. pic.twitter.com/6FVv3Ekkre
Trading Range
The Ethereum price has been trading in a range between $213-$231 over the past two days. While it briefly moved above this level on Feb. 27, it immediately decreased inside it. The decrease continued until the price validated the bottom of the range once more, then the trend reversed and ETH has been moving upward since, going above the middle of the range. In order to determine the future movement, a look at a higher time-frame is required.
Ascending Support Line
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The Ethereum price has been following an ascending support line since Jan. 2, 2020. The recent decrease served to validate the support line for the fourth time, and the price created a long lower wick and moved upward. The decrease also validated the 50-day moving average (MA).
Besides this support line that suggests the price will increase, a bullish cross between the 50- and 200-day MAs transpired on Feb. 16.
So, the price is expected to move toward the top of the short-term range discussed in the previous section.
Double Bottom
Going back to the short-term movement, we can see that the price has created a double bottom, combined with long lower wicks. Even more, this bullish reversal pattern has been combined with bullish divergence in the RSI. Therefore, the price is expected to increase and eventually reach the resistance area at $248, which was the previous breakdown level.
To conclude, the Ethereum price has completed a double bottom and is expected to move upward toward the next resistance area at $248.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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