Ethereum Price Analysis, Bulls Are Getting Ready To Rocket
To $500 |
Ethereum holds in consolidation ahead of an ascending
triangle breakout to $500.
A rejection at $470 could trigger massive sell orders and a
break down towards $400.
Ethereum has been bumper to bumper with Bitcoin’s majestic
price action in the last few weeks. The smart contract token is up 25% in
November alone despite the resistance encountered marginally above $470. At the
time of writing, Ether is changing at $465 amid an aggressive push from the
bullish camp to resume the ultimate rally to $500.
The formation of an ascending triangle pattern on the 4-hour
chart suggests that a breakout is around the corner. Ascending triangles are
formed by drawing a horizontal line connect the price swing highs and another
line connecting a series of higher lows. Breakouts from the triangle can occur
either to the upside or the downside. However, traders usually expect the price
to break out in the same direction as the trend that preceded the triangle.
In this case, Ethereum is most likely to spike above the
x-axis and continue the uptrend to $500. The bullish outlook is supported by
the Relative Strength Index on the 4-hour chart. Recently the indicator bounced
off the midline, pulling towards the overbought area. If buy orders surge,
bullish pressure behind the smart contract token would increase and propel ETH
past the triangle resistance.
ETH/USD 4-hour chart
It is worth mentioning that a bearish outlook will come into
the picture if Ethereum is rejected by the x-axis. Moreover, if the volume of
sell orders increases significantly, a breakdown under the hypotenuse might
revisit the 50 SMA.
Ethereum Intraday Levels
Spot rate: $464
Percentage change: 0.3%
Volatility: Expanding
Trend: consolidation
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