Cryptocurrency Price Analysis: ETHEREUM

By Harshit

19th Aug 2020

Ethereum surged a massive 83% high from the past month. The second largest asset in the crypto market saw a two year high trading at $430 for the first time since August 2018. Setting up another major resistance at $447 with the asset believed to cross $500 mark by the end of year and not falling below $400 by the end of this month.

SHORT TERM PREDICTION: ETH/USD

(Source : TradingView)

Examining from the technical levels, the Relative Strength Index (RSI) a momentum oscillator estimating the extent of latest price changes (Check: Source Link ) is currently holding up at 60%, the lowest value exhibited by the indicator this month. The correction was anticipated before, as the asset topped a high of 89% at the beginning of the month to trading at an overbought market condition not until last week. The market was seen trading at an unfair high of $445 last week which is usually followed by a pullback, spotted the next day with a 1.43% decline. By the time of writing too, the asset is trading at a bearish $400 experiencing a 4.82% fall from the previous day below it’s, also trading close to it’s $401 support.

Thus, the indicator suggests a bearish momentum is on it’s way until the bulls act,in the coming days which seems to be unlikely.

(Source : TradingView)

Moving Forward, while trying a different approach from the previous predictions ,Moving Average Convergence Divergence (MACD) ( check: Source Link) another momentum trend generating oscillator indicates an increasing selling pressure in the picture with the MACD line falling below the signal showing a -3.21, further suggesting the bearish momentum of the price will continue.

On the contrary, there still exist a visible divergence gap between price and the EMA                                

(check: Source Link)  

Suggesting the uptrend might remain intact for a short period of time.

Furthermore, it is clearly visible that the shorter moving average (EMA 26) is still rising above the longer (EMA 50) which further proves the above theory that the bulls might still have an upper hand and there shall exist an incoming bullish trend for a shorter period of time.

However, it is to be noted that the bulls are struggling to keep up the uptrend since the beginning of the week and the price may touch or even fall below EMA-26 in the coming days as the gap seems to be closing between the two.

Excessive Selling pressure from short term profit motive bears when price reached a two year high last week can be said to be responsible for sinking the uptrend.

(Source : TradingView)

Incorporating the above, it can be said that an incoming bearish trend is on it’s way as the asset is already trading below it’s $412 support ( by the time of writing) and seems to continue in the same way.

we might see a shift in the trend if the price closes above $401 support in the coming days.

Below that the downtrend is likely to continue until the next $390 support.

However, an unexpected close above $413 support might see a bullish trend which is highly unlikely to happen.

 (check: Source Link)

Key Support level: $412, $401, $390 (highlighted with red)

Key Resistance level: $447, $433 (highlighted with blue)

FOR MORE SHORT TERM REFERENCE:

Source Link

Fxempire Forecast

Harshit

Currently Studying Bachelor of Science.(Hons) degree in statistics and seeking real-world,hands on experience to further develop acquired skills. Passionate to pursue a career in analysis with a strong interest in the field of financial market.

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