Bitcoin’s recent price appreciation has had a negative impact on the exchange rates of many alternative digital currencies, including Ethereum. However, since Friday, the ETH market has found some stability. Additionally, there are some technical patterns on the charts that are hinting at another big move.
For instance, the 2-hour chart is showing a clear Head & Shoulders pattern, with each shoulder having been tested twice. This indicates a lot of market support at the 0.022 area, which has been used as support multiple times since last Friday, as well as resistance on the 28th. If the ETH exchange rate starts trading underneath 0.022 at some point over the next few days, the bear market will likely continue and this H&S pattern will be invalidated. So, keep a close eye on the 0.022 price level.
Now, a very clear triangle formation can also be viewed on the 30-minute chart, which has been forming since Saturday. The trading range is getting compressed and it seems that another big move is imminent!
The most immediate obstacle to any rally can be found at the 0.025 pivot level. The 0.025 price area has served as resistance about two times already, so it’s not a stretch to assume that this level will act as resistance once again.
Image credit: 1
Chart Source: https://poloniex.com/exchange#btc_eth
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.