Ethereum Price Analysis: Bullish Divergence Spotted in ETH/BTC

Will the Ethereum price reach highs above ₿0.02 or will it continue to decrease? Keep reading below if you want to find out. For our previous analysis, click here.

Ethereum Price: Trends and Highlights for September 13

• ETH/BTC is following a descending support line.
• There is short- and long-term bullish divergence developing in the RSI.
• ETH previously broke out from a descending resistance line.
• There is resistance at ₿0.00180 and ₿0.00184.

Short-Term Ethereum Price Movement

A look at the hourly chart shows that the ETH price has been following a descending resistance line since September 11. The line has been validated four times, most recently on September 13, when the Ethereum price touched it and began an upward move. A look at the RSI suggests that the price will soon begin to increase. It has been generating bullish divergence in the form of a triple bottom for the entire duration of the descending support line. Let’s take a look at a different time-frame to see how this fits with the longer-term price movement.

Previous Movement

A look at the six-hour time-frame shows that Ethereum recently broke out above a descending resistance line. Afterward, it returned to validate it as support on September 13. This is a customary movement after a breakout, and it would be likely for the ETH price to continue its upward movement afterward. Additionally, we can see that the upward move discussed in the introduction was preceded by significant bullish divergence in the daily RSI. Combining these indicators and previous movement makes it clear that the bullish sentiment of the short-term analysis fits well with the long-term price movement.

Future Movement

An outline of possible future Ethereum price movement is given below. Additionally, two resistance areas are traced. The resistance areas are found at ₿0.00180 and ₿0.00184. The Ethereum price is likely to begin to increase towards them, after possibly validating the support line once more. We believe it will reach at least one of the resistance areas.

Summary

The Ethereum price is following a descending support line. According to our analysis, it is likely to begin an upward move soon. For hypothetical trading purposes, we consider Ethereum a buy near ₿0.00172 with a target between ₿0.00180-₿0.00184. Do you think the Ethereum price will begin an upward move? Let us know in the comments below. 

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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.  Images are courtesy of Shutterstock, Trading