Ethereum [ETH] Price Analysis: Price Just Broke Down After Forming a Double Top, Where Will It Find Support?
Price broke down after reaching the resistance area at $160-$175 and forming a double top. The breakdown was preceded by short-term bearish divergence and is currently trading in the minor support area near $135. There is no noticeable short-term trading structure.
The major resistance area is found at $160-$175.
The major support area is found at $80-85.
There are minor support areas for $135 and $125.
Price is trading above the daily Ichimoku cloud and short/medium-term moving averages.
There is a short-term bearish divergence in the RSI.
Ethereum [ETH] Price Analysis – ETH/USD Daily Chart
Chart Source: Tradingview, Bitfinex
A look at the Daily chart for Ethereum shows that price is currently trading at $140, right above the 0.382 fib area of the upward move from $82 to $163. The entire move, which ended with a double top on February 24th occurred over 69 days. Yesterday’s daily candle was a bearish engulfing which transpired on very significant volume. Currently, there is no clear trading structure in place, however, it is possible that price is following an ascending support line which coincides with the 0.618 fib line of the entire movement. However, the support line has only been validated twice. The line could be a precursor to an ascending triangle in the future, with the $165 area acting as the top resistance line of the triangle. The RSI was in overbought territory for a short period but is now at 52, indicating neither overbought nor oversold conditions. After a two week period of gains, the MACD has lost its power and is very close to making a bearish cross.
As for the moving averages, the 21 and 50-period MA have made a bullish cross and price is trading right above them, possibly finding support on the 21-period MA. The 200-period MA offered resistance to the price in the $175 area. Price broke out through the positive portion of the Ichimoku cloud on February 18 and is now trading above it.
4-hours Chart Source: Tradingview, Bitfinex
A look at the 4-hour chart shows that the breakdown was preceded by bearish divergence in the RSI. In one 2-hour candle, the price dropped from $167 to $140, a drop of 16%. Price is currently trading in the minor support area at $135, formed by previous lows. The next support area is found near $135, which also corresponds with the 0.5 fib line of the entire movement, as visible on the daily chart. There is no clear trading structure in the short-term.
Ethereum Price Analysis
Supreme Court Update: Indian Govt Has Four Weeks To File Policy Decision on Cryptocurrency
Tabassum 2 days ago Regulation News
Cryptocurrency and India appear with more uncertain topics every time –but this time, the case is quite different. As per the latest report, the Union Government of India has got the final four weeks of time from the Supreme court of India to share the ‘regulations around cryptocurrency in India’.
The uniqueness of this update is that – If in case the regulations remain unheard from the Union Govt within a four-week span, the Supreme court itself would come forth and finalize the case.
While every hearing has nothing more than ‘just DATES’, today’s hearing i.e on Feb 25, 2019, is hopefully the final version of it. Today’s case, fortunately, heard under ‘miscellaneous cases’ on the 53rd position on Monday that they were expected it to address on Tuesday or Wednesday under normal cases.
As for now – the crypto community in India is expecting positive headlines from Government after four weeks (possibly 25th March – considering four weeks from 25th Feb). However, if not from Govt, the optimistic hopes remain around Supreme court hearing very soon.
Also Read: The Great Indian Crypto Drama: Apex Court Pushes Hearing to Q1 FY19
To note, India has banned banks to participate in crypto affairs thus making it difficult for crypto enthusiasts in India to trade, invest or withdraw their money on cryptocurrency exchanges. With this, it’s quite important to note that only peer to peer exchanges are the way for Indians to participate in crypto activities.
What do you think about the possible ‘policy decision’ by Indian Govt? Will, there be clear regulations this time or the dates will usually forward? Share your opinion with us.