We began performing regular analyses of Electroneum (ETN) on March 15—one day after the BTC/ETN pair was listed on Tradingview. One week later, we performed our second analysis and predicted that the price of Electroneum would break out from the channel defined below. Our prediction was validated later that day. Soon thereafter, a reversal was initiated, and Electroneum’s price dropped. In today’s analysis, we will be using satoshis to measure the value of ETN where 1 satoshi = 0.00000001 Bitcoin.
On Mar 13, Electroneum (ETN) was listed on Huobi. The next day prices spiked from less than 140 satoshis to 280 on Mar 14.
It has been on a gradual downtrend since, reaching a low of 141 satoshis at the time of writing on Mar 29.
While the Huobi listing provided a strong boost to the coin for a very brief period of time, ETN has returned to levels before the listing. The dump has not been catastrophic, but it is certainly noticeable:
Electroneum (ETN): Trends And Highlights For March 29, 2019.
- Electroneum is trading inside a descending channel.
- There is bullish divergence developing in the RSI.
- There is resistance near 163 satoshis.
- There is support near 137 satoshis.
Descending Channel
The price of ETN on Huobi is analyzed at four-hour intervals from Mar 19 to Mar 29 to trace its current trading pattern. The price made a low of 150 satoshis on Mar 21. It has been slowly decreasing since, creating several lower lows. Tracing these lows gives us a descending resistance line:
The price of ETN made a high of 164 satoshis on Mar 20. A gradual downtrend ensued. The price has made several lower highs. Tracing these highs gives us a descending resistance line.
The support and resistance lines combine to form a descending parallel channel:
This is a generally neutral pattern with prices rising and falling between support and resistance. However, the downward angle of the channel suggests gradual average price decreases.
RSI Divergence
To better assess future price fluctuations, we incorporate relative strength index (RSI) into our analysis.About RSI: The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market. Combining RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations.
On Mar 19, the price made a low of 151 satoshis. It has proceeded to make lower lows since. Similarly, the RSI made the first low on Mar 19. However, it has continued to generate higher values.
This is known as bullish divergence and often precedes increases in price.
Based on this indicator, it is likely that the price will increase towards the resistance line in the near future.
Reversal Areas
The price of ETN on Huobi is analyzed at six-hour intervals from Mar 14 to Mar 29 in order to better visualize possible reversal areas. Resistance and support areas are used.Resistance and support areas are created when the price visits the same level several times. They are helpful in predicting possible future price levels based on past patterns.
The closest resistance area is found near 163 satoshis. If the price were to break out from the descending channel, it would provide a likely reversal area. This appears unlikely:
The closest resistance area is found near 137 satoshis. If the price keeps decreasing at the rate predicted by the channel, it is likely that it will reach this area in the near future. However, RSI indicates a possible upward movement. Based on the channel, it appears likely that price may drop to the support line and then initiate an upward move toward resistance.
Summary Of Analysis
Based on our analysis, ETN is likely to keep decreasing at the rate predicted by the descending channel. We believe a breakout will eventually occur, but not necessarily in the near future. However, short-term price increases are likely. It appears as if ETN may drop to the support line before an upward move ensues. This means a small dip in price before a slightly larger gain in the short-term despite long-term losses. What do you think will happen to the price of ETN? Let us know in the comments below. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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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