As we experience an increase in regulatory adoption, the price of Ethereum continues to plummet following an increasing bearish sentiment from speculators. Join us as we carry out a technical analysis of the
Monthly Chart of the ETH/USD
Similar to every other cryptocurrency in the top 20, the price of Ethereum made an epic upward surge in price throughout the year 2017. The ETHUSD pair established four consecutive bullish closing candles with a breakout above each successive high. A bearish close on February of 2018 nullified the bullish rally thereby confirming a false break pattern.
The opening price in the month of March initialized the bearish decent of 2018 which has so far made a 90% price decline.
Weekly Chart of the ETH/USD
Entering into the last quarter of the year 2018, the above weekly chart of the
On 12 November, a breakdown of bullish accumulation signaled an increase in bearish pressure thereby leading to a 52.2% price decline, not forgetting the bearish accumulation pattern formed on 26 November.
Daily Chart of the ETH/USD
Scrolling down our time series lens to the daily chart, a double bullish accumulation pattern was triggered on 02 November, forcing the price to move into a temporary upward swing. A breakdown of bullish accumulation on 13 November resulted in a price plummet of about 60.0%.
A triple bearish accumulation pattern formed on November 17 indicated an increase in bearish pressure, serving as a confirmation of the earlier triggered breakdown pattern. As price moves away from the breakdown region, the selling pressure started
4-HR Chart of the ETH/USD
The above 4hour chart fires a bearish hidden divergence pattern which was confirmed by two price action patterns, a breakdown of bullish accumulation and a false break pattern on 0:00hr and 16:00hr of 13 December. Prior to the bearish hidden divergence formed triggered alongside the earlier mentioned confluence of patterns, a breakdown of bullish accumulation was already triggered on 11 December 08:00. These break down and bearish divergence patterns left a strong resistance level at 92.56961.
An earlier triggered breakdown of bullish accumulation on 09 December 16:00 established a resistance level at 99.22017, along with a bearish accumulation resistance on 96.40681.
2-HR Chart of the ETH/USD
The above chart actually started off with a bearish accumulation, in combination with a breakdown of a hidden bullish accumulation pattern.
Similar to the 4hour chart, the 2hourchart also triggered a lower time span bearish hidden divergence pattern on the13 December. This pattern, on the other hand, was triggered in combination with a breakdown of bullish accumulation at the same time as the divergence pattern.
After the huge sell pressure triggered by the breakdown pattern, a price recoil gradually settles into a hidden bearish inside bar pattern.
These patterns individually establish resistance levels at 92.53696, 91.46363, and 87.74827 respectively.
There’s a popular saying in trading that you don’t catch a falling knife. The