Ethereum Price Prediction: strong support at $576, lots of room to rise – Confluence Detector
The price of Ethereum (ETH/USD) has been relatively stable and many ask: what's next? The path of least resistance for the cryptocurrency may be up.
The Technical Confluence Indicator shows that the price of the digital coin has strong support at $576, which is the congestion of the Fibonacci 23.6% one-day, the Simple Moving Average 50-15m, the Bollinger Band 1h-Middle, the Simple Moving Average 10-1h, the Fibonacci 23.6% one-month, and the Bolinger Band 15m Lower.
If ETH does fall below this level, it will have to work its way through quite a few convergence areas and the most potent confluence of levels below awaits at $547 which is the meeting point of the one-month low and the one-week low.
Looking up, there is weak resistance at $589 which is the meeting point of the Bolinger Band 15m-Upper, the BB 1h-Upper, and the Fibonacci 23.6% one-week. However, the next meaningful resistance line is only at $629. This is where the Simple Moving Average 100-4h and the Fibonacci 38.2% one-month converge, both are very significant levels.
As mentioned earlier, Ethereum would find it easier to move up rather than down.
Here is how it looks on the tool:
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
