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.
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.
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.
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.
To determine possible price levels following an increase, we incorporate resistance areas into the analysis.
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.