Ethereum (ETH) Re-Tests Previous All-Time High Level

While the Ethereum (ETH)/USD pair is struggling to hold on above support, the ETH/BTC one is showing strong signs of an impending breakout. 

ETH has been decreasing since reaching an all-time high price of $4,867 on Nov 9. The decrease led to a low of $3,960 on Nov 18, before the token bounced. It created a long lower wick (green icon), which is considered a sign of buying pressure.

The wick transpired inside the horizontal $4,180 support area. This is a crucial area, since it previously acted as the all-time high resistance. Therefore, the current decrease looks like a re-test after a breakout. 

The next support area is at $3,650. This is the 0.382 Fib retracement support level.

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The shorter-term two-hour chart shows that ETH has broken out from a descending resistance line and validated it as support afterwards (green icon). 

This is another bullish sign, that suggests the short-term correction has come to an end.

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Cryptocurrency trader @Pentosh1 outlined an ETH/BTC chart, stating that the token could go all the way to ₿0.1

Source: Twitter

The daily chart shows that ETH is trading inside a symmetrical triangle. It has been doing so since May 13. 

While the triangle is considered a neutral pattern, it is transpiring after an upward movement. Therefore, a breakout from it would be more likely than a breakdown.

Furthermore, technical indicators support the continuation of the upward movement.

The MACD, which is created by a short- and a long-term moving average (MA) is positive and moving upwards. This means that the short-term MA is moving at a faster rate than the long-term one. 

Furthermore, the RSI, a momentum indicator, is above 50 and increasing. This is a sign associated with bullish trends.

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The wave count also indicates that ETH/BTC is in wave four of a five wave upward movement. Wave four most often takes the shape of a symmetrical triangle. After the triangle is complete, another upward movement would be likely, which would take ETH towards new highs. 

The1.61 external Fib retracement level on wave four provides a target of ₿0.099, aligning with that from the tweet.

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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.


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