On Apr 8, 2019, the price of Ethereum (ETH) made a high of $187.98 & €167.32. A sharp drop followed. Lows of $156.42 & €138.36 were reached on Apr 15.
The price began to increase, reaching highs close to $180 and €160 on Apr 23. It has been decreasing since.
Will the price of Ethereum keep falling?
Let’s find out:
Ethereum (ETH): Trends and Highlights for April 24, 2019
- The price of Ethereum has been on a downtrend since Apr 8.
- It is trading inside a descending channel.
- Bearish divergence is developing in the RSI and the MACD.
- There is support near $156 and €140.
On Apr 8, Ethereum reached an hourly high of $187.78. A sharp decrease was followed by a gradual increase.
The price has made several lower highs. Tracing these highs gives us a descending resistance line:
On Apr 6, the price reached a low of $161.71. Several market cycles have been completed and the price has created lower lows each time. Tracing these lows gives us a descending support line.
The support and resistance lines combine to create a descending channel:
It is likely that the price will trade inside the confines of the channel until a decisive move occurs.
To predict the direction of the move, we need to take a look at a longer time-frame combined with technical indicators.
Combining RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations. They are shown in the chart below:
On Apr 18, the price made a high of $174.10. It continued to increase and made a high of $176 on Apr 13.
Similarly, the RSI and the MACD made the first high on Apr 18. However, they continued to generate lower values.
This is known as bearish divergence and often precedes price decreases.
Furthermore, we can see that the price has been trading inside an ascending channel since Feb 10.
Using these indicators, it is likely that the price will decrease and eventually fall down to the support line of the channel.
To determine possible price levels following a decrease, we continue with an analysis of support areas.
The closest support area is found near $156 and €140 and is found within the current trading pattern. Price is likely to decrease to this level and possibly reach the support line.
Summary of Analysis
Based on this analysis, the price of ETH is likely to decrease towards the support line of the channel. It is likely to reach the support area near $156 and €140 in the short-term. In such a case that prices fall below the support area and toward the support line, Ethereum may drop into the $150s and €130s.
To read 2019 and 2020 Ethereum price predictions, click on the green button below:
Do you think ETH will reach the support area? 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.