Ethereum [ETH] Price Analysis: A Successful Wedge Breakout Is Confirmed.

The price of Ethereum reached a top of $168 on February 24. However, the price suffered a flash crash that made it drop sharkply below the ascending support line that had been in place since February 5. The price has struggled to break above $145 since. In the short-term, the price recently broke out of a descending wedge. It has developed short-term bearish divergence in the RSI and the MACD.

Key Highlights

  • There is major resistance near $168.
  • There is a major support area near $124.
  • The price is trading above the short and medium-term moving averages.
  • Price recently broke out of a descending wedge.
  • There is short-term bearish divergence.

Ethereum Analysis – ETH/USD – 2-Hours Chart

 

Ethereum Price Analysis
Chart Source: Tradingview, Bitfinex 

A look at the 2-hour chart for Ethereum shows that price reached a top of $168 before sharply dropping. The three-wave movement from $103 took 17 days and 14 hours. The major resistance area is found near $168. The price quickly broke down below the ascending support line.The major support area found at the most recent trading range is found near $124.

As for the indicators, there is bearish divergence developing in the RSI, which is currently trading at 68. Furthermore, the MACD is very close to making a bearish cross. However, the price is trading above the 21 and 50-period moving averages which have made a bullish cross (black arrow).

Ethereum Analysis – ETH/USD – 30-Minutes Chart

Ethereum Price Analysis
Chart Source: Tradingview, Bitfinex

A look at the 30-minutes chart shows that price has struggled to break out above $144 since the drop. This movement has been going on for roughly 10 days. Initially, the price was trading in a downward channel resembling a descending wedge, from which it broke out on March 5. After the breakout it made yet another unsuccessful attempt at breaking out past $144.

As for the indicators, there is significant bearish divergence developing in the RSI. Furthermore, the MACD has made a bearish cross and is moving downward, but is not negative yet.

 

 

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