If so, he suggested that Ethereum will reach $10,000. Will the price get there? Continue reading below in order to find out. For those of you interested in a video analysis, please click below:
Ethereum cycle I looks like Bitcoin cycle I.— Wolf 🐺 (@IamCryptoWolf) November 28, 2019
5k is pessimistic, more probably 10k. pic.twitter.com/k4c6zW6NcW
RSI PatternLooking at Ethereum’s price history, we can see an interesting development that has been occurring every year.
- An upward cycle of a different magnitude has always begun in December/January.
- This was preceded by a breakout above the resistance trend-line of the weekly RSI.
- Slightly after the RSI break, the price broke out above a significant resistance area and began an upward trend.
Ethereum Descending WedgeLooking closer at the pattern, we can see a developing descending wedge that has been in place since December 2018. Additionally, there is a very strong bullish divergence in both the weekly RSI and the MACD. Since the descending wedge is considered a bullish pattern and divergence is present in such a high time-frame, we are expecting a breakout. Since the price has been trading inside its current pattern for more than a year, it would be normal for a significant upward move to follow. The bare minimum for the increase would be ₿0.055. This level corresponds with the 0.618 fib level of the previous downward move and has previously acted as support, before the price flipped it as resistance. To conclude, after a long period of consolidation, Ethereum looks primed for an eventual breakout. This hypothesis is supported by both technical indicators and previous price movement.
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.