Many Say Its Dead, but They Haven’t Seen This..
Ethereum Analysis
Ethereum:
At first glance, Ethereum (ETH) looks to be caught in a pretty established trend to the downside . I agree with this, but in statement only. Many people simply base trend off of price direction relative to highs and lows and go from there. When I look at ETH at time of writing, I see some strong support in the median price range which should play a role as the next pivot.
- Chart: Daily bar chart
- Period: 2018 & 2019
- Date: October 4th, 2019
- Price: $172.00/$174.00
In the chart above, I highlighted the median I mentioned above. Historically, this price zone has been established as both, key resistance and key support. Now that we established the median, we need to establish factors that warrant a long-term reversal in price.
As you can see, there are a few factors that warrant a possible reversal. In order to determine this, the event must be a significant influence in the long-term trend. The main three that caught my attention are the March 2019 & May 2019 breakouts which are labeled above, as well as the December 2018 & January 2019 pivot.
After we establish a strong case for a reversal, we need forecast the possible route price may take. I chose this direction and angle because its relatively similar to the first half of 2019’s uptrend and for another reason you will see below.
In the chart above, we can see the previously established variables contributing to a possible channel to the upside. This channel can also be confirmed by the possibility of price mirroring, which can be seen below
Final assessment:
After cleaning up the chart, we can see there is a strong possibility that a reversal is in the near future. Crypto trends are notorious for mirroring past movements and if this holds true, the bull run is only getting started.
Published at Fri, 04 Oct 2019 05:37:47 +0000
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