TL;DR Breakdown
- Ethereum price prediction expects a sway in price soon.
- Ethereum finds strong support at $608.
- Strong resistance is persistent at $630.
The queen of cryptocurrency has been on a gradual rise for the year 2020. The price of Ethereum started from just $123 at the start of the year and peaked at $655 towards the end of the year. Currently, Ethereum is priced at $611. With near-identical movements to the king of cryptocurrencies, the queen peaked at $638 for the day with a low of around $587. During the start of the day, an inverse head and shoulder formation could have been seen but the queen erupted out of it quickly.
The technical indicators for ETH suggest a buy. 13 of the total 28 indicators are giving out a buy signal and 6 suggest a sell with the rest as neutral. 8 of the oscillators are neutral with an overall buy signal. Whereas 11, a majority, of the moving averages are a buy with the overall indicator as a strong buy. Ethereum’s short term market outlook appears to be bearish.
Ethereum price prediction: What to expect?
In his Ethereum price prediction, analyst Vince Prince has identified a major descending wedge formation. With the strong bearish volatility that Ethereum has portrayed it is expected that the wedge formation will lead to Ethereum prices towards lower levels. Ethereum has successfully completed a coherent wave count from A to D. It is currently at point D and expected to fall to E.
At point E, Ethereum will test the lower boundary of the descending wedge formation. It will also encounter a back-up cluster at E, which is also the 65 EMA level, so maybe the support will be sufficient for Ethereum to sustain rather than to fall lower. The back-up cluster can also support Ethereum to break out of the wedge formation upwards.
Currently, at wave D, Ethereum is at a major resistance cluster. Ethereum’s future will be determined by its behavior at the wave D. If Ethereum is able to successfully cross the upper boundary of the descending wedge formation, bullish sentiments can be expected for the foreseeable future. Otherwise, the price drop can be expected.
Expert traders are suggesting a log position as Ethereum’s price action had been bullish in the short term. The queen is also currently in a stable range. It has found support in the range of $617 and $623. The queen is also being seen to close over to the $636 mark and if that happens then the queen can be expected to test the monthly resistance level of $670.
On the other hand, per cryptocurrency analyst Kyer, the long position is headed towards the monthly resistance of $670 and above to a $687 mark. The MACD appears to be making a bullish cross. Divergence So, this could be a great opportunity to buy ETH.
A pennant formation can also be seen in the price action of Ethereum. The formation is expected to touch down the resistance level at $677 and hopefully break out upwards. Most of the Ethereum price predictions are optimistic for Ethereum’s price. Although the prices can be very volatile and anything can happen the next day, keeping in mind the current predictions, it could be a better option to go for a long position, at least in the short term.
