On May 20, 2019, we analyzed Ethereum (ETH and Ethereum Classic (ETC) to predict future price fluctuations. In this analysis, we assess the validity of our predictions.
We begin by examining the trading patterns of each of the coins and then assess their technical indicators. By comparing them to those observed yesterday, we are able to make a more thorough assessment of the cryptocurrencies.
Ethereum In a Broadening Wedge
Since May 17, ETH/USD has been trading within a short-term ascending broadening wedge. During this period, gradual increases have been observed:
ETH dropped from the resistance line on May 20 to validate the support line. A slight reversal brought the price back into the middle of the wedge where it is still trading at the time of writing.
To better predict The price of Ethereum is analyzed alongside the 100- and 200-period moving averages below:
On May 20, the 100-period MA crossed above the 200-period one. This is known as a bullish cross and often indicates that an uptrend has begun. Furthermore, this was succeeded by a price increase above both moving averages.
In yesterday’s analysis, we noted that bearish divergence had recently been generated within the RSI and MACD. Because this was occurring within a bearish pattern, we predicted: “the price of ETH will decrease towards the support line of the wedge.”
The support line was reached after our analysis was published. Then the price rebounded to its current position.
Given May 20’s bullish cross, ETH may experience slight increases inside the confines of the wedge. However, there remains bearish divergence in a bearish pattern suggests that a breakout is unlikely.
The price may still reach the support line after any future hourly gains.
Ethereum Classic Inside a Symmetrical Triangle
ETC/USD reached an hourly low of $6.66 on May 15 and generated an ascending support line. After reaching a high of $8.48 the next day, a resistance line emerged.
Since that time, ETC has been decreasing inside the symmetrical triangle outlined below:
At the time of writing, the price is trading slightly above the support line of the triangle.
The price of ETC is analyzed at 12-hour intervals alongside the RSI to assess possible future price fluctuations. During this period, ETC has been following an ascending support line since February. No resistance line is yet apparent for this period.
The triangle traced in the previous section is well above the long-term support line:
Bearish divergence is observed within the RSI for the period May 15 to 19. In addition, bearish divergence was observed in both the RSI and MACD between Apr 7 to May 16 in yesterday’s analysis.
This suggests ETC is likely to breakdown from the triangle and reach the long-term support line traced above. Prices may reach $6.
In the short term, ETH is trading inside a broadening wedge while ETC’s price is trading inside a symmetrical triangle. Additionally, ETH has generated a short-term bullish cross while ETC has generated significant long-term bearish divergence in the RSI.
Therefore, we believe that ETC will soon break down from its short-term trading pattern and drop towards the long-term support line. ETH, on the other hand, may experience slight gains before dropping. A breakdown does not currently appear likely for ETH.
A summary is presented in the table below:
|Ascending Broadening Wedge||Symmetrical Triangle||ETC|
|Short-Term Bullish Cross||Long-Term Bearish Divergence RSI||ETH|
Do you think the price of ETC will break down? What about ETH? 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.
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.