Ethereum Price Analysis: ETH/BTC Completes a Five-Wave Elliott Formation

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On September 7, 2019, the Ethereum price reached a low of ₿0.016. A gradual upward move followed, which intensified on September 14. ETH reached a high of ₿0.022 on September 19. It has been decreasing since.

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How long will the Ethereum price continue to decrease? Keep reading below if you are interested in finding out.

For those of you more interested in a video analysis, click below:

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For our previous analysis click here.

Ethereum Price: Trends and Highlights for September 23

  • ETH/BTC is trading inside a long-term descending wedge.
  • There is resistance at ₿0.022.
  • ETH has likely finished a five wave Elliott formation.
  • There is support at ₿0.019.
  • The price is trading inside a short-term descending channel.

Long-Term Ethereum Price Pattern

A look at the daily chart shows that the Ethereum price has been trading inside a descending wedge since September 2018.

Once the ETH price reached the support line on September 7, it began the upward move discussed in the introduction.

At the time of writing, it was trading in the middle of the channel.

We can also see that the upward move stopped once the price reached the 100-day moving average (MA).

The Ethereum price struggled to move above it for three days, creating two upper wicks before decreasing slightly on September 22.

Elliott Wave

Looking closer at the two hour-chart we can see one resistance area, which is found at ₿0.022.

This area also coincides with the previously mentioned 100-day MA.

Furthermore, the Ethereum price movement closely resembles a five-wave Elliott formation.

If so, Ethereum finished the fifth wave on September 19 and is now in its correction phase.

Let’s take a look at technical indicators to see if that is likely.

Signs of Weakness

A look at the RSI and MACD supports the possibility that the Ethereum price has finished a five-wave Eliott formation.

The movement on September 18-19 (fifth wave) was combined with a bearish divergence in both the RSI and the MACD.

Future Movement

Looking closer at the hourly chart we can see that the Ethereum price has been trading inside a descending channel since reaching a high on September 19.

It looks as if Ethereum is in the correction phase.

An outline of possible future movement along with one support area is given below.

We believe the Ethereum price is likely to continue trading inside the channel, before eventually breaking out and completing the B wave.

Afterward, it should decrease towards the support line.

Ethereum Price Summary

The Ethereum price is trading inside a short-term descending channel.

According to our analysis, it is likely to continue trading within its confines before eventually breaking out.

For hypothetical trading purposes, Ethereum is considered a sell near ₿0.0215 — at the top of the possible B corrective wave.

Do you think Ethereum will break out from the channel? Let us know 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. 

Images are courtesy of Shutterstock, TradingView.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

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