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Ethereum Price Analysis ETH / USD: Look For Signs

The $199.00 breakout is key for an ETH rally.

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  • Ethereum has a bullish short-term trading bias, but remains bearish over the medium-term
  • The four-hour time frame shows that a bearish head and shoulders pattern has been invalidated
  • The daily time frame shows bulls need to rally price towards the $240.00 level to ignite a large bullish pattern

Ethereum is consolidating above the $180.00 level after the second largest cryptocurrency by market capitalization pulled back from just below the $200.00 resistance level earlier this week.

Last week’s powerful rally has helped to secure the short-term prospects for the ETH / USD pair, with the cryptocurrency moving above all its key short-term moving averages for the first time since early October.

The ETH / USD pair continues to hold onto trading gains of around ten percent from last week, leaving the cryptocurrency around 1% above its October monthly price open.

SIMETRI Research

Going forward, short-term technical analysis highlights that a bearish head and shoulders pattern with a $40.00 downside projection was invalidated during last week’s rally.

Furthermore, the invalidation target of the bearish head and shoulders pattern would take the ETH / USD towards the $240.00 level. Buyers now need to hold price above the $199.00 resistance level to trigger the next leg higher in the ETH / USD pair.

The daily time frame highlights that buyers need to move price above the $210.00 resistance level to change the medium-term outlook towards the ETH / USD pair.

The mentioned time frame also highlights the $240.00 level as technically important. A move towards the $240.00 level would help to form a bullish inverted head and shoulders pattern on the daily time frame, with an upside target that would take the ETH / USD pair towards the $360.00 level.

Looking at the downside, it is entirely possible that a sustainable price floor is now in place around the $152.00 level. A double-bottom pattern was also formed during last week’s decline and sharp rebound.

Both time frames show that a sustained move below the $166.00 level would be extremely bearish for the ETH / USD pair, and could expose another technical test towards the $152.00 level.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Ethereum is neutral, at 50.00 %, while the overall long-term sentiment towards the cryptocurrency is also neutral, at 45.00%.

 

ETH H4 Chart October 31 by TradingView
ETH / USD H4 Chart by TradingView


Upside Potential

The four-hour time frame shows that a bearish head and shoulders pattern with an upside target of around $40.00 has now been invalidated. Key upcoming resistance is now located at the $194.00 and $199.00 level.

Key resistance for the ETH / USD pair on the daily time frame is currently located at the $210.00 and $240.00. Both time frames highlight the importance of the $240.00 level.

 

ETH Daily Chart October 31 by TradingView
ETH / USD Daily Chart by TradingView


Downside Potential

The four-hour time frame is showing that the $175.00 level is providing the strongest form of short-term technical support below the pivotal $180.00 level.

The daily time frame highlights that a break under the $166.00 level would be bearish for the ETH / USD pair and may expose a deeper decline back towards the $152.00 level.


Summary

Ethereum could stage a powerful upside rally if buyers can perform a sustained technical breakout above the $199.00 resistance level.

Long-term analysis highlights that a breakout above the $240.00 could propel the ETH / USD pair toward the $360.00 level.

 

Check out our introductory guide to Ethereum.

Ethereum Chart

 

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

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