See More

Ethereum’s Previous History Indicates a New Market Cycle Is Approaching

2 mins
Updated by Max Moeller
Join our Trading Community on Telegram
The Ethereum price has been trading inside a descending wedge for more than a year. Previous history and technical indicators suggest that it will soon break out and begin a new upward move.
The Ethereum (ETH) network is in preparation for the biggest update in its history, the switch to Ethereum 2.0. This is expected to occur in 2020, after the Istanbul hard fork. The update will change the network from a proof-of-Work to a Proof-of-Stake, where validators will approve all transactions. However, the Ethereum price decreased significantly over the past week, following the lead set by the Bitcoin price. Market analyst and trader CryptoWolf (@IamCryptoWolf) suggested that the Ethereum and Bitcoin prices are possibly following a very similar cycle. Currently, Ethereum is in a similar position to where Bitcoin was in 2012. 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:

RSI Pattern

Looking at Ethereum’s price history, we can see an interesting development that has been occurring every year.
  1. An upward cycle of a different magnitude has always begun in December/January.
  2. This was preceded by a breakout above the resistance trend-line of the weekly RSI.
  3. Slightly after the RSI break, the price broke out above a significant resistance area and began an upward trend.
Currently, the RSI trend has been broken, while the price resistance is still intact. If it is broken, we could see an upward move similar to what transpired over the previous years. Ethereum Pattern

Ethereum Descending Wedge

Looking 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. Ethereum Descending Wedge 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. Ethereum Retracement 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.
Top crypto platforms in the US | April 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

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 ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
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)
READ FULL BIO
Sponsored
Sponsored