On Apr 2, 2019, the price of Ethereum (ETH) made an hourly low of $143.17. A sharp upward move ensued as part of a market-wide spike.
Ethereum reached a high of $181.33 on Apr 4. A sharp decrease followed. Prices subsequently emerged on a gradual uptrend.
By Apr 8, a higher high of $187.98 had been reached before prices dipped to under $180.
Will another upward trend bring Ethereum to $200?
Let’s find out:
Ethereum (ETH): Trends and Highlights for April 9, 2019
- The price of Ethereum made a high of $188.98 on Apr 8.
- ETH/USD is trading inside an ascending wedge.
- Bearish divergence is developing in the RSI and the MACD.
- There is support near $164 and $156.
On Apr 1, Ethereum reached an hourly low of $41.28. It has been gradually increasing since.
The price has made several higher lows. Tracing these lows gives us an ascending support line:
On Apr 3, the price made a high of $181.33. A sharp drop followed soon after. Since then, the price has been increasing, creating several higher highs.
Tracing these highs gives us an ascending resistance line.
The resistance and support lines combine to create an ascending wedge:
This is a bearish pattern. It suggests that price losses are more likely than price increases. As ETH/USD trades near the support line, should we expect a breakout?
To find out, we need to take a look at technical indicators.
On Apr 3, the price made a high of $181.3 . It made a higher high of $187.98 on Apr 8.
Similarly, the RSI and the MACD made the first high on Apr 8. However, they have continued to generate lower values since.
This is known as bearish divergence and often precedes price decreases. Furthermore, the level of divergence is significant.
Using these indicators, it is likely that the price will keep trading inside the wedge until a breakdown occurs. This could happen in the very near-future given Ethereum’s current proximity to the support line.
The first support area is located near $164. The second one is found near $156. If the price breaks down from the wedge, it is likely it will reach at least one of these areas.
Summary of Analysis
Based on this analysis, the price of ETH is likely to keep trading inside the wedge before it eventually breaks down.
Do you think ETH will break down from the wedge? 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.