Ethereum (ETH) Defends Ascending Area, Price Resumes Uptrend?
Ethereum (ETH) has successfully defended its ascending channel and now resumed its uptrend. The above hourly chart for ETH/USD shows that Ethereum (ETH) touched the bottom of the ascending channel and bounced back before closing the hourly candle. The next candle visible on the chart is now a green one which is a strong indicator that Ethereum (ETH) has now resumed its uptrend. The price plunged hard the in the past 24 hours after Ethereum (ETH) formed a double top around the $247.81 level. This was seen as a strong resistance and was followed by a massive sell off as demonstrated by the volume profile.
RSI for the above chart has now reached oversold territory and is likely to reverse in the days ahead. Wave trend for ETH/USD shares a similar outlook on the hourly chart and indicates that the price might rally from current levels. After Ethereum (ETH)’s fall from $247.81, it could have landed at a strong support around $197.03 but the price found a higher support as the bottom of the ascending channel. If Ethereum (ETH) continues to trade in a similar manner, it could still see a new high by the end of the year. Short term outlook for Ethereum (ETH) might appear obscure considering the prevailing negative sentiment. However, the long term picture is clear as Ethereum (ETH) having broken its downtrend against Bitcoin (BTC), is now considered to have begun a new trend already.
The above 4H chart for ETH/BTC shows more clearly how Ethereum (ETH) has finally broken out of its downtrend and has now begun a new cycle. Since Sep 10, 2018, the price of Ethereum (ETH) has been trading in an ascending channel against Bitcoin (BTC) after breaking the downtrend. The price could progress further along the ascending channel in an ABCD formation as visible on the above chart. If Ethereum (ETH) were to continue trading at this pace, it could certainly reach a new all time high against Bitcoin (BTC) as well.
Technical indicators for ETH/BTC point to the same uptrend continuation as that of ETH/USD. The price might see a big boost as Bitcoin (BTC) steadies and confirms the beginning of a new cycle. Ethereum (ETH) has been the victim of wild bearish swings but that has not stopped it from attracting new investors. The possibility of an Ethereum (ETH) ETF is still very real and a lot of new ICOs are still waiting to go live on Ethereum (ETH) as the market reverses. Ethereum (ETH) has recently lost to Ethereum Classic (ETC) though as ETC/ETH pair is now in an uptrend after a long period of downtrend. It is possible that Ethereum Classic (ETC) might give Ethereum (ETH) a run for its money and could prove as a serious contender in the near future. However, Ethereum (ETH) already has a lot of developers and miners on its side and is well positioned to still reach an all time high during its next bullish cycle.
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