Ethereum price analysis – November 2019

In the middle of the all-encompassing market indecision, CoinSyncom’s TA team decided to make an exclusive Ethereum price analysis. We’re going to use BitMEX perpetual futures 1-hour, 4-hour, and 6-hour charts. The reason for that is to show you a big picture. The one that’s going to explain the possible future price movement.

As always, let’s dive straight into business.

Ethereum analysis – the triangle

We have encountered some speculations that Ethereum (ETH) follows the ascending triangle formation. However, our charts reveal a different story. The Ethereum price analysis shows a symmetric triangle instead.

Ethereum price analysis triangle

The thing with symmetric triangles is that they aren’t bullish nor bearish formations. Therefore, until the inevitable breakout, the uncertainty is bound to remain present. That indecision is best manifested by MACD and RSI readings where there are still no visible divergences or extreme values.

Ethereum MACD RSI

Currently, ETH’s price stands at $184. Yet, all market indecisions announce some bigger movement. Therefore, Ethereum has two, equally probable ways to go.

The breakdown

Ethereum price levels

The BitMEX perpetual ETH/USD chart above shows the scenario if Ethereum dives southward. That way is paved by two crucial support levels. The first at $182. This support overlaps with the rising lows of the triangle. As such, it will provide a strong basis for the triangle continuation. In simpler terms, if ETH bounces of the mentioned level, the next crucial level is the resistance at lower highs.

In case that ETH breaks the mentioned level, the next support is at $152, which would be a 19% decline. Still, it is always smart to take a look at Fibonacci retracement when analyzing a triangle formation.

Ethereum analysis Fibonacci

The approximate supports and resistances coincide with Fibonacci levels. Therefore, at 38.2% from the recent high stands the mentioned $182 level. At the same time, it used to act as resistance back in early October, confirming the importance of that price. The next negative critical level is exactly at 61.8%. Therefore, once again, Fibonacci retracement proves its value in the cryptocurrency trading strategy.

But what if we see a rally?

The breakout

In case that Ethereum bounces off the $182 level back into the triangle formation, there is a possibility of a breakout. Upon the confirmation of the breakout, ETH may experience a new price rally.

Ethereum price analysis break out

In that scenario, as you can see in the 6-hour chart above, the first crucial resistance will be at $225. This level, if broken, will act as a confirmation of the uptrend. If the market’s bulls manage to buy their way above it, there are a few more levels to acknowledge.

The first at $225, followed by $340, and the final, long-term target, at $365. While this may be one of the most optimistic possible results, the nature of the symmetrical triangle leaves the possibility open.

Now, if you want to take a peek at the wildest of all predictions, we’ll repeat the last chart with a “small” addition.

Ethereum cup and handle

If this optimistic scenario comes to pass, ETH may form a cup-and-handle formation. For those unaware, cup-and-handle is a strong bullish formation with brief bearish reversal forming a handle. However, the reversal happens and the price reaches the new high, marking the end of the formation. For Ethereum, this final “handle-reversal” would have to have support at $275.

ETH handle support

Technical analysis basics

Our job, besides analyzing charts, is to educate our readers. Therefore, if we detect a blatant formation, we’re going to show you how it played out. This time, the ETH/USD 1-hour chart revealed a classic “head and shoulders” formation.

Ethereum head and shoulders

Head and shoulders is a bearish reversal formation. The chart shows that it played out perfectly. The higher high followed the first high. Once the price bounced off the common support, it reached the lower high again only for the bears to take over. This marks the confirmation of the reversal and a further price decline.

Ethereum analysis – the conclusion

Ethereum is in a fragile period. The symmetric triangle is a neutral formation so traders should remain patient. Both scenarios are still possible. Therefore, investors should look for confirmation in the technical analysis to take positions.

Ethereum analysis neutral

This time around, to help you with the decision, look for fundamental signals as, towards the triangle’s final stage, many things can influence traders’ level of trust. Meanwhile, short-term traders, if skilled, can trade between the triangle’s extremes making a profit of swings.

Once the new trend will be confirmed, CoinSyncom’s TA team will followup with another Ethereum price analysis, digging deep to bring you an exclusive and the most comprehensive insight.

You should look elsewhere for investment advice since this isn’t it. Even if it looks like it, it’s not. Cryptocurrencies are known to be extremely volatile and risky speculations. Always do your own research. Consider consulting an investment professional prior to investing your money.