Ethereum (ETH) and a couple of the top 10 cryptocurrencies have been experiencing reasonable gains, especially on the lower time frames. Although the weekly charts are showing potentials of a bullish trend, the monthly chart still wears a poker face. Join us as we analyze the significant technical price patterns that may change the course of the crypto market to its glory days.
ETHUSD: Monthly Chart
Paired against the USD, the Ether maintains a very bearish outlook on the monthly timeframe, as it currently enters into alternating bearish and bullish candles after, a series of consecutive bearish closing candles from May 2018 to November 2018. These bearish closing bars reinforced a continuation of the downtrend by triggering a bearish accumulation on July 2018 and October 2018 and critical resistance at 515.28 and 242.62 respectively.
The alternating bullish and bearish candles formed from December 2018 up till February 2019, on the other hand, are of very low volatility, indicating further bearish sentiment for Ethereum. Let’s move down to the lower weekly chart and see if there’s any chance of a bullish trend recovery.
ETHUSD: Weekly Chart
Following a breakdown of bullish accumulation on 12 November ’18, the price of Ethereum dropped by about 53.0%, and later triggered an opposite breakout of bearish accumulation. Going forward, on 07 Jan ’19, the pair again triggered a breakdown of bullish accumulation, causing the pair to trade between a channel of resistance and support at 167.0 and 83.0.
The breakout pattern of 17 December ’18 coincides with a bullish regular divergence on the same date, shining the only ray of hope for a bullish price recovery. At the closing price of the 11 March ’19 candlestick, the pair signaled a bullish accumulation pattern with support at 130.55.
ETHUSD: Daily Chart
The above daily chart shows the ETHUSD triggering a breakout of bearish accumulation on 30 Jan ’19 and 08 February ’19, after a 32% price decline from a higher bearish accumulation pattern. The confluence of support at 102.49, resulted in a price gain of 53.4%, then failing to a dark cloud cover pattern on 24 February ’19.
Critical support levels from the above daily chart are 102.49 and 123.73. Opposite resistance levels are at 170.28, 162.63, and 143.83 respectively.
ETHUSD: 4-HOUR Chart
Although it was almost impossible to profit from the dark cloud cover candlestick pattern on the daily chart, the 4hour time frame revealed an early short entry setup in the form of a breakdown of bullish accumulation on 24 February ’19 08:00. This presented a short sell trade with a very tight stop loss of 2.7% and a profit of 22.2%. Subsequent short sell trades were triggered on 27 and 28 February ’19 as shown above.
The pair later entered into an oscillatory pattern by signaling bullish accumulation on 05 March ’19 08:00; breakdown of bullish accumulation on 10 & 11 March ’19 04:00; and lastly a breakout of bearish accumulation on 15 March ’19 00:00.
Such breakout of buying and selling pressure points left resistance and support at 170.0, 147.5, 144.0, 141.49, 133.42, 131.56, 130.25, 127.74, and 125.88 respectively.
Conclusion and Projection
Last week’s closing price triggers a bullish accumulation setup, bringing hope for a continuation of the bullish trend. However, the low-price volatility of the pair causes us to consider a possible bearish hidden divergence. A price close below the 130.55 support level on the weekly chart confirms a continuation of the long-term bearish trend. For now, we look forward to the 167.00 and 225.12 as potential profit target for a long order.
This article was provided by Cryptocointrade. Cryptocointrade is an informational source for crypto trading. They publish crypto trading platform reviews, crypto trading bots’ comparisons and information regarding crypto trading education. In addition, they have three different blogs, crypto technical analysis, crypto fundamental analysis and general trading blog. Both crypto trading beginners and more experienced crypto traders will find valuable information on Cryptocointrade.
Image source: Independent.co.uk
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