At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our Apr 12 analysis of Ethereum (ETH) we predicted that the price of Ethereum would increase in the short-term. Our prediction was validated on Apr 15. To learn more, read our latest ETH/USD price analysis below:
On Apr 10, 2019, the price of Ethereum (ETH) made a high of $186.97. A sharp drop ensued which took it to lows of nearly $160 on Apr 12.
ETH/USD Prices: Apr 8 – Apr 16
After a small increase, the price reached a low of nearly $150 on Apr 15.
Will the price of Ethereum keep decreasing or should we expect a reversal?
Let’s find out:
Ethereum (ETH): Trends and Highlights for April 16, 2019
The price of Ethereum made a high of $186.97 on Apr 11.
ETH/USD is trading inside a descending wedge.
Bullish divergence is developing in the RSI and the MACD.
There is resistance near $185.
Descending Wedge
In this section, we define Ethereum’s current trading pattern by analyzing the price of ETH on Bitfinex at two-hour intervals from Apr 8 to Apr 16.
On Apr 7, Ethereum reached an hourly low of $166.58. A sharp increase was followed by a gradual decrease.
The price has made several lower lows. Tracing these lows gives us a descending support line:
On Apr 8, the price reached a high of $187.98. A gradual decrease ensued. The price has made several lower highs.
The support and resistance lines combine to create a descending wedge:
It is likely that the price will trade inside the confines of the wedge until a decisive move occurs.
To predict the direction of the move, we need to take a look at technical indicators.
Technical Indicators
We begin with a look at the MACD and RSI.
The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
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 MACD and RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations.
They are shown in the chart below:
On Apr 11, the price made a low of $160.89 It made a lower low of $156.52 on Apr 15.
Similarly, the RSI and the MACD made the first low on Apr 11. However, they have continued to generate higher values since.
This is known as bullish divergence and often precedes price increases.
Using these indicators, it is likely that the price will begin to increase towards the resistance line of the wedge. It is possible that a breakout may occur.
Possible resistance.
To determine possible price levels following an increase, we incorporate resistance areas into the analysis.
Resistance 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.
One resistance area is shown in the chart below:
The first resistance area is located near $185. If the price breaks out of the wedge, it is likely that it will reach this area.
Summary of Analysis
Based on this analysis, the price of ETH is likely to increase towards the resistance line of the wedge. A breakout is likely in the medium-term, while a breakdown is unlikely.
To read 2019 and 2020 Ethereum price predictions, click on the green button below:
Do you think ETH will begin an upward move? 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.
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 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)
On Apr 8, the price reached a high of $187.98. A gradual decrease ensued. The price has made several lower highs.
The support and resistance lines combine to create a descending wedge:
It is likely that the price will trade inside the confines of the wedge until a decisive move occurs.
To predict the direction of the move, we need to take a look at technical indicators.
The first resistance area is located near $185. If the price breaks out of the wedge, it is likely that it will reach this area.
