Ethereum price prediction: On the verge of the abyss - Confluence Detector

  • ETH/USD is rangebound close to the recent lows.
  • The downside is the path of least resistance

ETH/USD is hovering around $86.00, off the Asian low of $84.95. The third largest cryptocurrency has been relatively stable during recent trading hours as the market grope for support after a long-term decline. Ethereum has lost over 50% of its value in a recent month due to a combination of technical and speculative factors including the upcoming Constantinopole update and massive ETH selling by ICO projects.

Looking technically, ETH/USD is close to an uncharted territory. The only viable support is created by the previous week low at $82.15. Once it is broken, there'll be little to stop the price on the way down to $75.00 (Pivot Point 1 month Support 1) and to the long-term congestion zone at $60.00 that served as a jumping-off ground for the price in April 2017.

Immediately above the current price, the resistance area is created by the confluence of technical indicators, which include 38.2% Fibo retracement Daily and SMA5, 4-hour. Once it is cleared the recovery may be extended towards $90.00 guarded by SMA10 4-hour, Bollinger Band 4-hour Middle and 61.8% Fibo retracement daily. Another strong resistance lies on approach to $psycholigical $91.00 with SMA200 1-hour, SMA50 4-hour and 23.6% Fibo retracement weekly.

However, the ultimate barrier is seen above $97.20. It is created by 23.6% Fibo retracement weekly and Pivot Point one-day Resistance 3. This area separates us from pivotal $100.00 and represents the upper border of a mid-term channel.

ETH/USD 1D 

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