A Bullish Ethereum Finally Breaks Out Above $150! (ETH/USD Price Prediction for 04.03.2019)

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At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our Mar 29 analysis of Ethereum (ETH) we predicted that the price would likely trade within the confines of the ascending triangle defined below. However, a market-wide spike in early April invalidated our prediction.

On Feb 6, 2019 the price of Ethereum (ETH) made a low of $102.49. A sharp upward move ensued two days later. This was followed by a gradual decrease.



In early April, prices spiked. While Ethereum was unable to reach $150, it reached highs over $175 on Apr 3. The price has been on an uptrend since.

At the time of writing, the highest price recorded on Apr 3 was $177.57.



ETH Prices: Jan 1 – Apr 3

Ethereum (ETH): Trends and Highlights for April 3, 2019

  • The price of Ethereum has been on a gradual uptrend since Feb 6.
  • ETH/USD appears to be trading within an ascending triangle.
  • Ethereum’s current daily candle is a shooting star.
  • Bearish divergence is developing in the MACD and the RSI.
  • There are support areas near $164 and $157.

Ascending Triangle

In this section, we define Ethereum’s current trading pattern by analyzing the price of ETH on Bitfinex at one-day intervals from Jan 1 to Apr 3.

On Feb 10, Ethereum reached a low of $118. A sharp upward move followed. Several market cycles have been completed. Each low has been higher than the previous one.

Tracing these lows gives us an ascending support line:

On Jan 6, the price made a high of $167. A sharp decrease was followed by a gradual increase. At the time of writing on Apr 3, this price had been reached three times.

Tracing these highs gives us a horizontal resistance line.

The resistance and support lines combine to create an ascending triangle:

This is a bullish pattern and suggests price increases.

The price broke out on Apr 3, reaching a high of $177.57.

However, it was immediately pushed back and dropped below the resistance line. Since the breakout was not succeeded by continuous gains, it can be considered insignificant.

Price decreases toward the support line appear likely.

Shooting Star

To better determine possible future price fluctuations, we take a look at the candlestick for Apr 3. Though the day has not yet completed, the candlestick has so far formed a shooting star.
A shooting star is interpreted as a type of reversal candlestick preceding a falling price. It is made up of a candle with a small lower body, little or no lower wick, and a long upper wick that is at least two times the size of the lower body. It is found in an uptrend.
The shooting star candlestick for Apr 3 is seen in the graph below:

The long upper wick indicates that the buyers drove prices up during the day, but they encountered selling pressure that drove prices back down. Since this is occurring in an uptrend, the selling pressure is viewed as a potential reversal sign.

This hypothesis would gain more validity if the closing price is lower than the opening price. However, the closing price for Ethereum for Apr 3 does not exist at the time of writing. We will return to this candlestick to determine its true pattern in tomorrow’s analysis of ETH/USD.

Bearish Divergence

Since we are unable to rely on the candlestick alone to determine a reversal, we will incorporate technical indicators into our analysis. Using these we will assess possible price movements for Ethereum.

About the Indicators: 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.
The RSI is shown alongside price in the graph below:

On Apr 2, the price reached a high of $163.96. It reached a higher high of $178.6 on Apr 3.

Similarly, the RSI  made the first high during the same interval. However, it generated a significantly lower value on Apr 3.

This is known as bearish divergence and often precedes drops in price.

Using this indicator and the prior pattern, it is likely that the price will undergo a slight correction in the near future and drop toward support.

Reversal Areas

The price of ETH/USD at one-hour intervals from Apr 2 to Apr 3 with support areas to determine possible future prices.

Support areas are created when the price revisits the same level several times. They indicate the levels price might reach in the future based on past patterns.

The first support area is located near $164. The second one is found near $157. We believe that Ethereum will reach at least one of these levels following a corrective period. If Ethereum drops below the second support area, a return to or below $150 in the short-term may be possible.

Summary of Analysis

Based on this analysis, the price of ETH is likely to undergo a slight correction and drop to one of the support areas outlined above.

Do you think ETH will keep increasing or begin falling?  Let us know your thoughts in the comments below.

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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

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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