Root
Reviews and LongReads
Ethereum is targeting $ 780, while these 3 indicators do not rule out a market correction soon

Ethereum is targeting $ 780, while these 3 indicators do not rule out a market correction soon

Do repost and rate:

Rated:132

While everyone is watching the Bitcoin price with attention, due to the high correlation of most cryptocurrencies with one another, it is worth looking to the left and right now and then. In the case of Bitcoin, of course, all that remains is to look down and the first thing we see there is Ethereum. Therefore, today we want to devote ourselves to an extensive Ethereum course analysis in order to filter out how the crypto market is currently doing.

We want to examine the current upswing at ETH from two different directions. It becomes interesting because both perspectives weight opposing scenarios differently. According to the bullish view, the Ethereum price is already targeting $ 780. The bearish view, on the other hand, sees a drop in prices as low as $ 455 still within the realm of possibility.

In this analysis I will show that, according to the technical chart analysis, both points of view are justifiable variants with valid arguments. At the end we will try to decide which of the two variants is the more likely. $ 780 or $ 470 - what would you like? Let's find out together!

Ethereum rate of $ 780 or more

Because it currently suits the mood of the market so well, let's first look at the bullish perspective for the Ethereum course.

An ascending triangle can be read off the daily chart based on the price movements, which is considered a reliable and bullish pattern. With the help of this bullish pattern, one could theoretically have predicted the recent upward breakout of the Ethereum price.

At first glance, the pattern seems to correspond to the ideal type. The horizontal upper trend line was a clear resistance, while the upward trend line represented the support line for the Ethereum price. Together they form the ascending triangle.

Both trend lines are touched by the price often enough and the volume development seems to fit the pattern perfectly. After the breakthrough, the Ethereum price also seems to have already converted the upper trend line into its new support line. So you could say that everything is currently going according to the textbook.

As I have already drawn in the above chart, a minimum price target can be calculated with the help of the chart formation. We get this by measuring the height of the formation and then projecting it onto the upper horizontal trend line. This gives us the minimum price target of $ 780 for the Ethereum course.

With an ascending triangle, the minimum price target is reached in 89% of the cases after the breakthrough. In other words, according to this chart formation, a further price increase for ETH of 20% or more is very likely.

So much for the bullish view of current events. Now let's take a look at a more pessimistic account of the current situation.

Larger correction for the ETH price is also possible

Even if pessimism is difficult after the Bitcoin price has scratched $ 24,000 in the meantime and companies all over the world increasingly want to stock up on BTC, a reply is important and if it is only about testing your own theory.

In our case, the bearish reply could be that the Ethereum price is still in a rising wedge formation.

A rising wedge formation is one of the bearish examples of well-known chart patterns. The typical shape, which results from the upper rising trend line and the lower slightly steeper rising trend line, can also be drawn in the chart in any case.

In addition, it fits in with the theory of an imminent price correction that both the MACD and the RSI indicator confirm a bearish divergence. One speaks of a divergence when the MACD or RSI indicator forms highs or lows that deviate from the corresponding highs and lows of the price. As the following chart shows, there is currently such a divergence in the Ethereum price.

A bearish divergence is when price makes new highs while the MACD or RSI makes lower highs. Such a divergence could signal the end of an uptrend.

For example, the MACD indicator briefly signaled the end of the market upswing in the Ethereum price at the end of July and announced the subsequent correction.

Should the bearish scenario prove to be true, a minimum price target of around $ 455 could be derived with the help of the rising wedge formation. It must be said, however, that the formation is only considered confirmed when the formation's lower trendline has broken through. As long as the price does not close below this, the rising wedge formation has a fairly high error rate of 24%. The minimum price target is also only achieved in 6 out of 10 cases and should therefore not be taken at face value.

Bulls vs. Bears: What will it be for the ETH course?

Even if the rising wedge formation currently represents a valid scenario for the market, it is (at least currently still) the more unlikely one at the moment. Reasons for this are, among other things, that in the case of the rising triangle there is already an eruption and the formation can be viewed as confirmed. This chart pattern is also very reliable and predicts a price target for the Ethereum price in the direction of the previous trend. According to the Dow theory, one should generally rate a continuation of the trend as more likely than that it will reverse.

At the same time, however, we can see that the market is currently extremely volatile. The bearish scenario is also supported not only by a chart formation but also by the bearish divergence of the indicators discussed above.

So we notice that the last word may not have been spoken here. Even if, from a fundamental point of view, the signs for the market are more bullish than ever, the Ethereum price, just like the Bitcoin price, has moved extremely far away from important standards such as the 200 MA line on the daily chart due to the previous price increase. This is not a bad omen per se, as this trend-following indicator will of course continue to rise in a bullish market, but sooner or later all prices will approach this again. For these reasons, the bearish variant should also be kept in mind as a potential possibility. The rising wedge formation can, however, be discarded with relative certainty as soon as the upper trend line of the pattern has been broken by the Ethereum price. In this regard, the price development should therefore be monitored closely.

MY SWISSBORG CHRISTMAS PROMOTION!

How it works

Swissborg gives everyone who register to the wealth app and deposit 50 € (depositing FIAT is recommended) a reward ticket with a random value ranging from 1 to 100 € in BTC.

But only, if you use my links and follow the described steps below. If you do so:

I give you my reward ticket i am getting from your subscription for free!

All you need to do is this:

1. Download the Swissborg Wealth App (mandatory)
2. Deposit 50 €, deposits on Swissborg are free so you can withdraw them later. (Withdraw costs about 1 €, with the earning from the reward you'll gonna make either a plus or a break even) (mandatory)

Note: If you only download the Wealth app you only get 10% of my ticket

3. Download the Swissborg Community App (mandatory)
4. Apply the Code: OA62FUI (mandatory)
5. Contact me via Discord (Overmind#0055), Telegram (@SwissborgSwarm) or mail ([email protected]) (preferred) for verificaiton and to get your BTCs! (mandatory)

Note: If you only download the Community App and apply the code i say thank you!

Have fun earning free BTC!

Do not miss the chance to get up to 200€ in BTC for free!

This promotion begins today! and ends on December 2020-12-31 00:00 CET

I Paid every participant: Check in the comment section of these posts for a proof of my payment to them:

Proof 1

Proof 2

Proof 3

Proof 4

Proof 5

Thank you for participating!

Note: I pay in any currency you like :). And the withdrawal fee from Swissborg Wealth App to your wallet are free of fees. I pay them. Happy free Crypto earning!