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Ethereum had a difficult September, clearly highlighted last week, which saw Eth-USD prices drop from $ 165 in the wake of heavy sales. However, this marked an area in which the price action on the weekly chart had formed previous support in October 2017. This area also corresponds to an area of u200b u200bthe area. of price that falls on the trend line of the lower channel on the downward channel that is on the weekly chart below.
ETH / USD weekly chart showing downward channel: 17 September 2018
So what is the outlook for ETH / USD in the third week of September 2018?
Fundamental Outlook
The Ethereum team has been slow to release updates and partnerships in recent months. The price, on the other hand, was largely determined by project owners selling ICO surpluses by converting ETH into fiat currency. This, combined with the downward trend of ICOs, has been disastrous for price health.
Some of the "faults" (if you can call it that) for the recent drop in Ether's prices can be assigned to Ethereum co's comments -Comando Vitalik Buterin, whose recent comments released in an interview with Bloomberg seem to suggest that he is not very optimistic about the future growth potential of the sector.
Traders tend to read much meaning in the comments made by the founders of cryptocurrency token and nothing more than Buterin himself. If there is a perception of a lack of optimism about the price of a crypto in the market, this tends to lead to lower prices and sales.
Technical Perspectives
The weekly chart for ETH / USD shows that price action continues to move within the boundaries of the trend lines that form the lower and upper boundary. We see the downward resistance line of the red trend line and the blue support line below, which form the boundaries of price action. However, the level of support has changed in the last week, with the weekly bearer candle reaching the price level of $ 165, which was the support seen last October 2017.
Weekly chart ETH / USD: 17 September 2018
The horizontal resistance represents the last support area that was extracted from the candle last week. The downward resistance of the trend line has remained intact and continues to act as a long-term resistance for ETH / USD.
The candle for this week has opened on a bullish note, but it is still too early to indicate whether this bullish momentum will persist or, in fact, what will happen to price action during the week. All that can be assumed now is that the horizontal support is waiting. However, we must not forget the downward channel, whose lower channel line has also intersected long-term support, reinforcing this level.
Here are the commercial scenarios.
Scenario 1
The price candle for the week has rebounded both on the horizontal support and on the lower channel line. It is possible, therefore, that price action can continue on its upward trajectory, in which case it will target both the next horizontal resistance available (previous support level at $ 290) and the upper line of the channel at a price level that could approach $ 340. The momentum for Ether is still very bearish. Therefore, traders who want to follow the trend should sell the rallies to the resistance areas listed above. The fact that the channel is already facing down indicates that the trend is falling.
The behavior of the price bars / spark plugs in the support / resistance areas is fundamental for any commercial voice. Selling on rallies requires that the price candle hits the resistance areas without closing over them. Usually, the candle or bar will test the area several times during the week before closing below the resistance line.
Scenario 2
The next scenario is expected to occur if Bitcoin prices move back to support levels, dragging other cryptos along with it. In this case, if Ethereum returns to support levels seen at $ 190 (short-term support seen on daily charts or times) or even back to $ 165, it is possible that the ETH / USD price may rebound from these levels. A rebound means that the weekly candle will touch those areas and start climbing again. The graphs at shorter time intervals will show a series of candles that test the support area without closing under it. Those who want to follow the rebound (ie contrarian traders seeking the short scalp, may decide to use long exchanges to follow these rebounds to defined resistance levels.
Market sentiment:
- Long term: bearish [19659025] Medium Term: Neutral
- Short Term: Neutral
Points to Note:
Price movement on a weekly chart generally takes time to evolve A single candle is formed in a week and several candles may be needed for price targets Patience in waiting for any one of the possible price scenarios is a requirement to negotiate weekly charts.
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Disclosure: We are / are long ETH-USD.
Disclosure of Business Relations: This article was written in collaboration with an analyst
Note from the Publisher: this article discusses one or more titles that are not traded on a large stock exchange US. Please be aware of the risks associated with these stocks.
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