Ethereum Shows Potential For Growth Says This Week’s Crypto TA

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Trade Floor

Altcoins are demonstrating good growth, however, the quotations of their leader, Bitcoin, remain flat.

It has shown no reaction to the positive influences of its colleagues. It may easily be a mere correction that is likely to be followed by a decline.

For BTC, it is important to keep the support at $9,190: while the price is above it, there is still a chance for growth.

Ethereum currently looks quite interesting; its quotations have escaped the Wedge which signifies a possible rise; however, it failed to form a good Wolfe Wave here.

At the same time, on smaller timeframes, there is potential for another pattern promising growth.

That is why the important support levels seem to be $185.00-$180.00, from which the cryptocurrency may demonstrate decent growth.

Bitcoin

The volatility keeps decreasing as bitcoin’s price is still squeezed inside the Triangle pattern.

The important support level situated at $9,190 remains intact. At the same time, the Stochastic values are also declining to the support line.

As the main scenario, we should regard a bounce off the lower border of the Triangle and an attempt of growth with a breakaway of the upper border of the pattern.

Yet another signal, confirming this scenario, is constant bounces off the Moving Averages, which points at pressure from bulls; however, it is not strong enough to push the price outside the pattern.

The development of the upward movement may be confirmed by a breakaway of the upper border of the pattern securing above $12,400.

The negative scenario for BTC/USD would be a bounce off the lower border of the pattern, which will provoke a decline to $7,175 and then $5,720.

Technical analysis of H1 also reveals a decline in volatility as well as a flat movement with its upper border at $11,000 and its lower one around $9,190.

The current levels may also be regarded as an important support area; the RSI values are pushing off the ascending trendline.

However, here as well the ascending should be confirmed by a breakaway of the resistance level securing above $11,000, which will mean a breakaway of the upper border of the Triangle and growth to $12,400.

The scenario may no longer be valid in case of falling to $9,700; then the closest aim of the decline will be near $9,190.

Ethereum

Ethereum’s price has escaped the Wedge. Here, we can see the ascending trendline on the RSI indicator has broken away, which signifies potential growth, aiming above $280.00. However, a return of the indicator values in order to test the broken line shouldn’t be excluded.

Another signal in favor of a possible reversal might be a breakaway of the upper border of the Bollinger Bands indicator.

The main trading idea might be a correction of the digital asset to $198.00, followed by further growth.

The bullish trend may be confirmed by a breakaway of the resistance line securing above $240.00.

The positive scenario may no longer be valid in case of a strong decline below $163.00, which will mean an escape from the ascending channel, followed by a movement to $100.00.

On H4, ethereum’s price is also demonstrating growth. An important resistance area is around $240.00.

However, the formation of an inverted Head and Shoulders pattern seems more interesting here, which might point at a further price rise to $280.00.

In order for the pattern to form it is important to see a correction to $185.00, where the pattern may start its realization from.

This scenario is confirmed by a breakaway of the descending trendline on RSI, which signifies a potential breakaway of the upper border of the descending channel.

The scenario implying growth of Ethereum may become a decline and a breakaway of the local minimum, secured under $163.00. This will cancel the reversal pattern and send the price deeper down.

XRP

The quotations of XRP have managed to escape the descending channel, which signifies strong interest from buyers.

It seems that further growth with the first aim of $0.3740 should be expected; however, RSI values are testing the overbought area, which may provoke another decline.

Earlier, we have seen it fall when RSI values rose above 70. As the main trading idea, we should expect a test of the broken border of the descending channel and a movement upwards to $0.3740.

The return of bulls may be confirmed by a breakaway of the slow MA securing above $0.3500. The scenario may no longer be valid in case of XRP falling below $0.2395, which will mean the downtrend resumes.

On smaller timeframes, the quotations have also escaped the descending channel. The nearest goal of the resistance is the area of $0.3340.

As the main trading idea, we should expect a correction and a test of $0.2795, then further growth with the first aim of $0.3340, the breakaway of which will signify further movement to $0.3805.

Another signal confirming the development of the upward movement may be a breakaway of the descending trendline on RSI.

Another scenario might be a test of the resistance line at $0.3340, followed by a bounce and a test of $0.2795.

In this case, we should be waiting for an inverted Head and Shoulders pattern to form, which might precede an upward movement and a breakaway of the area around $0.4500.

The bullish scenario may no longer be valid in case the price falls below $0.2390; if so, the scenario of further declining should come into force.

Litecoin

Litecoin’s price keeps performing an upward correction. However, there is still potential for decline due to a reversal Head and Shoulders pattern forming.

Most likely, we will see tests of $85.00-$80.00, from where the quotations might push and try to move downwards, aiming at $55.20 and then $40.00.

An additional signal, confirming such a scenario, may be a test of the resistance line on RSI.

This movement might be confirmed by a breakaway of the lower border of the ascending channel.

The negative scenario may no longer be valid in case of strong growth above $105.00, which will cancel the reversal Head and Shoulders and entail further growth, aiming at the local maximum of $146.65.

On H4, Litecoin is testing the resistance area. The upper border of the descending channel also lies here. That is why we should expect a bounce and a decline with the potential target at $55.20.

A strong signal confirming this movement is a test of the trendline on RSI. Earlier, the quotations have bounced off this line.

The negative scenario may no longer be valid in case of strong growth above $90.00, which will signify an escape of LTC/USD quotations from the descending channel and a movement to $107.80.

Bitcoin Cash

On D1, the cryptocurrency is moving inside the Head and Shoulders pattern. On the one hand, this pattern points at potential decline, but on the other hand, here we can also see a breakaway of the descending trendline on RSI, which may mean the completion of the price fall.

The second signal in favor of growth is a right shoulder of the pattern forming longer than the left one, which may suggest the market is reluctant to go down.

However, a price rise should be confirmed by a breakaway and by securing above $355.00, which will cancel the pattern. In this case, we may be sure of decent growth for BCH.

The scenario may no longer be valid in case of falling below $247.00; if so, we will be back at the scenario with the reversal pattern completing.

On smaller timeframes, the quotations of the digital asset are squeezed inside the Triangle. The RSI values have also stumbled over the descending resistance line.

These factors suggest a potential bounce off the current levels with the first goal at $280.00.

The variant might be canceled by a breakaway of the upper border of the pattern securing above $355.00, which will signify further growth aiming at $457.00.

The weekly Crypto Technical Analysis is provided by Dmitriy Gurkovskiy, Chief Analyst at RoboForex.

Needless to say, all statements and views expressed above and any forecasts contained herein are solely based on the author’s particular opinion.

This analysis may not be treated as trading advice. RoboForex and Trustnodes bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Editorial Copyrights Trustnodes.com

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