At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our Apr 16 analysis of Ethereum (ETH) we predicted that the price of Ethereum would increase in the short-term. Our prediction was validated on Apr 18 when the price broke out from the descending channel we define. In this analysis, we take a look at Ethereum’s price in both euros and dollars to predict possible price fluctuations in ETH/USD($) and ETH/EUR(€):
On Apr 8, 2019, the price of Ethereum (ETH) made a high of $187.98 & €167.32. A sharp drop ensued which took it to lows of $156.42 & €138.36 on Apr 15. It has been increasing since.
ETH/USD Prices: Apr 8 – Apr 18ETH/EUR Prices: Apr 8 – Apr 16
Will the price of Ethereum keep increasing or should we expect a reversal?
Let’s find out:
Ethereum (ETH): Trends and Highlights for April 18, 2019
The price of Ethereum has been on a downtrend since Apr 8.
ETH is trading inside an ascending wedge.
Bearish divergence is developing in the RSI and the MACD.
There is resistance near $175 and €155.
There is support near $161 and €143.
Descending Wedge
In this section, we define Ethereum’s current trading pattern by analyzing the price of ETH on Bitfinex at one-hour intervals from Apr 8 to Apr 18. In order not to create confusion, we will not be using images of the ETH/EUR pair until the summary, where the relevant resistance and support areas will be shown in euros.
On Apr 1, Ethereum reached an hourly high of $167.37. It has been gradually increasing since.
The price has made several higher highs. Tracing these highs gives us an ascending resistance line:
On Apr 15, the price reached a low of $156.42. A gradual decrease ensued. The price has made several higher lows.
The support and resistance lines combine to create an ascending 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 RSI combined with resistance areas.
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.
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 RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations.
They are shown in the chart below:
On Apr 15, the price made a high of $170.78 It made a higher high of $174.21 on Apr 17.
Similarly, the RSI made the first high on Apr 15. However, it has continued to generate higher values since.
This is known as bullish divergence and often precedes price increases. Furthermore, the divergence is occurring at the resistance line of a bearish pattern, giving it more validity.
In addition, there is significant resistance near $175. The bearish divergence makes it unlikely that the price has enough strength to break out above this level.
Using these indicators, it is likely that the price will fall down to the support line of the wedge and possibly break down.
Reversal Areas
To determine possible price levels following an increase, we continue with an analysis of resistance and support areas.
The first resistance area is located near $175 and €155. We do not believe the price will move above these areas.
The closest support area is found near $161 and €143. If the price breaks down from the wedge, it is likely to reach this area. We believe this to be likely.
Summary of Analysis
Based on this analysis, the price of ETH is likely to decrease towards the support line of the wedge. A breakdown is likely in the medium-term. Price may fall into the $160s and €140s in the short-term.
To read 2019 and 2020 Ethereum price predictions, click on the green button below:
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.
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 15, the price reached a low of $156.42. A gradual decrease ensued. The price has made several higher lows.
The support and resistance lines combine to create an ascending 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.
