ETH is approaching a major resistance area at $ 545.
Long-term technical indicators have started to show weaknesses.
ETH / BTC rebounded to 0.0260₿
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The course of Ethereum (ETH) has surpassed the $ 490 resistance area and reached a new annual record. That said, ETH is approaching an area of crucial long-term resistance, and one that will likely stand in the way.
Ethereum’s price has shown a considerable rally from its steep fall in March, and one which briefly pulled it below $ 100. Ethereum Code suffered another fall on September 4, but has since regained all of its losses.
Price is now approaching a considerable resistance zone at $ 545. This area is both horizontal resistance and the 0.618 fibonacci retracement level of the most recent decline.
Additionally, if the move since November 2018 is a correction in ABC (in white below), it could peak at around $ 535. This is the 1.61 fibonacci level of wave A.
Technical indicators have already started to show weaknesses. There is an unconfirmed bearish divergence developing in the weekly RSI while that of the MACD is already confirmed.
Additionally, the Stochastic Oscillator could generate a bullish cross shortly, confirming the trend reversal
Cryptocurrency trader @ cryptodude999 , shared an ETH chart, claiming that it is forging short positions within the current resistance zone of $ 500. Although this area is slightly lower than the one we highlighted as resistance, it is close enough to it to coincide with, making a possible top.
In the weekly chart, we can see that the price is about to break through the resistance at $ 490 in a bullish candlestick by going below the belt. It is possible that this is the move that will push ETH up towards $ 545.
The ETH / BTC price has declined considerably since the beginning of September. However, it has reached the 0.0260₿ support zone and may have started a significant rebound. The price has also created a double dip pattern, which shows considerable bullish divergences in the RSI like the MACD. The Stochastic Oscillator has formed a bullish cross.
If price continues to rise, the next resistance zone would be at 0.0295₿.
To conclude, Ethereum’s price should probably continue its rally towards at least $ 545. He could then possibly start a long term downward movement. It is also possible that ETH / BTC has hit a bottom, which could allow a faster rally for ETH, compared to BTC.