Ethereum [ETH] Price Analysis: A Successful Wedge Breakout Is Confirmed.

Published March 6, 2019 | Updated April 5, 2019

Bitcoin price analysis
Source: TradingView

Ethereum [ETH] Price Analysis: A Successful Wedge Breakout Is Confirmed.

The price of Ethereum reached a top of $168 on February 24. However, the price suffered a flash crash that made it drop sharkply below the ascending support line that had been in place since February 5. The price has struggled to break above $145 since. In the short-term, the price recently broke out of a descending wedge. It has developed short-term bearish divergence in the RSI and the MACD.

Key Highlights

  • There is major resistance near $168.
  • There is a major support area near $124.
  • The price is trading above the short and medium-term moving averages.
  • Price recently broke out of a descending wedge.
  • There is short-term bearish divergence.

Ethereum Analysis – ETH/USD – 2-Hours Chart

 

Ethereum Price Analysis
Chart Source: Tradingview, Bitfinex 

A look at the 2-hour chart for Ethereum shows that price reached a top of $168 before sharply dropping. The three-wave movement from $103 took 17 days and 14 hours. The major resistance area is found near $168. The price quickly broke down below the ascending support line.The major support area found at the most recent trading range is found near $124.

As for the indicators, there is bearish divergence developing in the RSI, which is currently trading at 68. Furthermore, the MACD is very close to making a bearish cross. However, the price is trading above the 21 and 50-period moving averages which have made a bullish cross (black arrow).

Ethereum Analysis – ETH/USD – 30-Minutes Chart

Ethereum Price Analysis
Chart Source: Tradingview, Bitfinex

A look at the 30-minutes chart shows that price has struggled to break out above $144 since the drop. This movement has been going on for roughly 10 days. Initially, the price was trading in a downward channel resembling a descending wedge, from which it broke out on March 5. After the breakout it made yet another unsuccessful attempt at breaking out past $144.

As for the indicators, there is significant bearish divergence developing in the RSI. Furthermore, the MACD has made a bearish cross and is moving downward, but is not negative yet.

 

 

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Valdrin is an eager trader, cryptocurrency enthusiast, and freelance writer. He specializes in technical analysis, indicators and charting guides. Reach out to him at [email protected]

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Valdrin Tahiri 33 Articles
Valdrin is an eager trader, cryptocurrency enthusiast, and freelance writer. He specializes in technical analysis, indicators and charting guides. Reach out to him at [email protected]