On Apr 2, 2019, the price of Ethereum (ETH) made an hourly low of $143.17. A sharp upward move ensued.
Ethereum reached a high of $181 on Apr 4.
It has been gradually decreasing since. However, a slight spike on Apr 5 appears to have prevented Ethereum from falling below $150.
Is Ethereum going to drop below $150 or will prices keep going higher?
Let’s find out.
Ethereum (ETH): Trends and Highlights for April 5, 2019
- The price of Ethereum made a rapid upward move on Apr 3.
- ETH/USD is following a descending support line.
- Ethereum is possibly trading inside a descending channel.
- There is resistance near $168 and support near $155 and $144.
On Apr 3, Ethereum reached an hourly low of $164.17 A gradual upward move ensued, followed by a sharp decrease.
The price has made several lower lows. Tracing these lows gives us a descending support line:
On Apr 3, the price made a high of $181.33. A sharp drop followed soon after. The price made one lower high.
Tracing these highs gives us a descending resistance line.
The resistance line has only been touched once, making it is possible that the price will create a different resistance pattern.
However, since the line is drawn parallel to the established support line, we believe it is likely that the price will keep following this line.
The resistance and support lines combine to create a descending channel:
It is likely that the price will keep decreasing at the rate predicted by the channel despite volatility. New highs and lows may be reached. However, this channle suggest that they wiill both grow successively lower over time.
The first support area is located near $155. The second one is found near $144. Ethereum reached the first area twice on Apr 4. Due to the strong buying power visible in the long lower wick of the first drop, we do not believe that the price will decrease below the first support area.
The closest resistance area is found near $168. The price is currently trading very close to this area. It is possible that Ethereum will reach this level before a drop toward the support area.
Summary of Analysis
Based on this analysis, yesterday’s prediction has yet to be invalidated. Therefore, we believe the price of ETH is likely to trade between two of the areas outlined above, inside the newly created channel.
Do you think ETH will keep trading inside the channel? Let us know your thoughts 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.