Ether Price Targets $160 as Altcoins Rally and BTC Trades Sideways
Altcoins continue to take advantage of Bitcoin’s sideways trading and traders who take a quick glance at the altcoin-to-Bitcoin pairings at their exchange of choice will notice that many of the altcoins are again posting double-digit gains.
At the time of writing, THETA is up 13.26%, KyberNetwork (KNC) 18% and TomoChain (TOMO) has rallied 16.09%. Ether (ETH) has failed to mirror these results but as the end of the 2019 approaches, the altcoin is still looking to close the year with a 35% gain.
Crypto market weekly performance. Source: Coin360
Since Nov. 27 Ether (ETH) price has tracked closely below the long-term descending trendline, painting lower daily lows. The Dec. 12 drop to $139 marked the fourth time the support has been tested since Nov. 22 and the altcoin remains at risk of falling to the last remaining strong support at $131.61.
Today’s uptick in volume shows bulls are keen to defend the $139 support and the price is now attempting to press against the descending trendline at $145.35 which is also aligned with a high volume node on the volume profile visible range indicator (VPVR).
Despite Ether’s bearish bias, there is an opportunity for a swing trade that could kick out a 10% to 12% return on investment.
ETH USD daily chart. Source: TradingView
If Ether can break above the descending trendline and clear the resistance at $150, the price could run through the VPVR gap to $160. This would also place Ether price within a few dollars of setting a daily higher high, something not seen since the drop from $163 on Nov. 24.
Ether price is also approaching the moving average of the Bollinger Band indicator at $148 and the upper band is at $155. Traders will notice that the moving average confluence divergence (MACD) histogram shows a steady increase in momentum and the MACD continues to pull away from the signal line.
ETH USD 6-hour chart. Source: TradingView
As shown by the 6-hour chart, Ether struggles to cross above the 12-period exponential moving average and the descending trendline but the Chaikin Money Flow (CMF) oscillator has risen above 0. The MACD appears to be on the verge of a bull cross and the RSI bounced from oversold territory and is en-route to 46.
Ether simply needs an increase in buy volume to push through the high volume node at $146.
ETH/BTC pair show signs of life
ETH BTC daily chart. Source: TradingView
For a change, Ether’s set up on the ETH/BTC pair is quite similar to the ETH/USD pair. The price has also been capped between the 12-point EMA and descending trendline at 0.020190 (sats).
Earlier today Ether price briefly popped above the descending trendline and traders will notice the bull cross on the MACD and that the indicator’s histogram has flipped green and is currently above 0. The relative strength index (RSI) has entered bullish territory and at the time of writing, it is climbing above 53.
The 0.019577 (sats) support has held well but Ether will have a tough time taking gaining above 0.020829 (sats). Traders might consider waiting for the price to reach 0.021101(sats)or a higher high at 0.021781 (sats) before considering an entry.
The same can be said for the ETH/USD pair. Traders might consider waiting until Ether clears the descending trendline to set a higher high above $152. Alternatively, buying the dip on pullbacks to the $138.57, $131.50 has also proved profitable so traders might consider waiting for less risky entry at either of these supports.
The views and opinions expressed here are solely those of the author (@HorusHughes) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Published at Fri, 13 Dec 2019 04:55:00 +0000