At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our Apr 26 analysis of Ethereum (ETH), we predicted that the price of Ethereum would decrease. Our prediction has yet to be validated or invalidated since the price is trading at similar levels. To learn more read our latest ETH/USD($) and ETH/EUR(€) analysis below:
The price has been increasing since.
How long will the price of Ethereum keep increasing?
Let’s find out:
Ethereum (ETH): Trends and Highlights for April 30, 2019
The price of Ethereum has been on an uptrend since Apr 26.
It is trading inside a horizontal channel.
There is bearish divergence developing in the RSI and the MACD.
The price is trading inside a longer-term descending channel since Apr 8.
There is support near $150 and €133.
In this section, we define Ethereum’s current trading pattern by analyzing the price of ETH/USD on Bitfinex at one-hour intervals from Apr 25 to Apr 30. In order not to create confusion, we will not be using images of the ETH/EUR pair until the summary, where the relevant resistance and support areas will be shown in euros and dollars.
On Apr 25, Ethereum reached an hourly high of $167.36. A sharp decrease was followed by a gradual increase.
The price reached the same level several times. Tracing these highs gives us a horizontal resistance line:
On Apr 26, the price reached an hourly low of $157.18. Several market cycles have been completed and the price has reached the same level three times. Tracing these lows gives us a horizontal support line.
The support and resistance lines combine to create a horizontal channel:
It is likely that the price will trade inside the confines of the channel until a decisive move occurs. To predict the direction of the move, we need to take a look at technical indicators.
The price of ETH is analyzed alongside the RSI and the MACD.
The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
On Apr 28, the price made an hourly high of $165.37. It made a higher high of $166.42 on Apr 30.
Similarly, the RSI and the MACD made the first high on Apr 28. However, they have proceeded to generate lower values.
This is known as bearish divergence and often precedes price decreases.
Using these indicators, it is likely that the price will decrease towards the support line of the channel. A breakdown is possible.
If the price breaks down, where will it find support?
To determine possible price levels following a decrease, we continue with an analysis of support areas.
Support areas are created when the price revisits the same level several times. They indicate the levels price might reach in the future based on past patterns.
They are shown for ETH/USD (first graph) and ETH/EUR (second graph) below:
The price has been trading inside a descending channel since Apr 8. The support line of the channel is currently at $150 and €133. If the price breaks down, it is likely to reach this area.
Summary of Analysis
Based on this analysis, the price of ETH is likely to decrease towards the support line of the channel.
To read 2019 and 2020 Ethereum price predictions, click on the link below:
Do you think ETH will reach the support line? Let us know your thoughts in the comments below.
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.