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Nick Leeson
Mar 28, 2020
by Nick Leeson

Ethereum's battle of $124: Breach it and go lower or bounce and surge higher?

ethereum
Ethereum is the world's second-largest cryptocurrency in the world with a market cap exceeding $14 billion. The price of Ethereum, at the time of writing, was $136 and had seen a 0.15% surge in the last 24 hours, whereas, the coin saw a surge of 16.67% in the last week or so.

With the continuation of the price in the rising wedge is still being seen. While the price is in the pattern, the daily moving average, namely 50 and 200, are getting closer to each other. Especially in a bearish way. This could imply a negative breakout of the pattern.

  • With the rising wedge formation, ETH is now looking at a 13% to 23% drop in its price in the upcoming week.

  • The price could settle anywhere from $113 to sub-$100.

  • All of the above depends mainly on the price and how it reacts to an important level.

    • Ethereum's Four Hour

    Source: Trading View.

    As mentioned in the earlier article, ETH did not see a 10-15% surge, instead, it moved sideways. The sideways movement is due to two levels, resistance at $136 and support at $133. The sideways movement has been going for more than 3 days now.

    At the time of writing, however, the price seemed to be supported by the POC (Point of Control) from the VPVR indicator. A point of control is an area or level of price where maximum trading has occurred for the visible area. And as seen in the chart, the selling (yellow) for this level is greater than buying (blue).

    Further, unlike Bitcoin, the RSI is inline with the price and hence no divergence is being formed. Hence, the price looks bullish. Additionally, the RSI has space to take ETH higher, provided, the rising wedge pattern's support and the support at POC does not give up.

    If the support holds, then the price will easily rally to the upper line of the rising wedge, and the targets in the previous article, ie., 10-15% would still be on the table. On the contrary, if the supports buckle under bearish pressure, then the price will witness a drop to immediate support at $113 aka a 15% decline.

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      Ethereum's battle of $124: Breach it and go lower or bounce and surge higher?
      Nick Leeson
      Nick Leeson is an avid trader and cryptocurrency enthusiast. Introduced to cryptocurrencies in early 2016 by a misclick on a YouTube video, Leeson has grown increasingly fascinated by them. He owns cryptocurrencies to trade and complete his goals of growing his accounts from scratch. Leeson's favourite cryptocurrencies include a lot of mid-cap altcoin projects that have the potential to actually disrupt the future. Any and all technical analysis/price prediction by Leeson is not a financial and/or investment advice of any sort.

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