Ethereum Technical Analysis for November 14, 2017

The price of Ethereum continues to hold steady in spite of the downward price woes that bitcoin is currently experiencing.

As the second largest market cap coin in the cryptocurrency sphere, Ethereum has seen a substantial increase in its use as the Initial Coin Offering (ICO) world continues to grow and flourish. Recent reports put out by the Ethereum Foundation indicate that Ethereum is now processing more transactions than the Bitcoin Blockchain, showing the power of the Ethereum system.

For some traders and investors, the price fluctuations associated with Ethereum are much more tolerable than the wild price swings exhibited by Bitcoin. While Bitcoin does present all the desirable elements that traders need to effectively day trade a market, i.e. volatility, average daily range, and liquidity, a willingness to tolerate risk and weather a hefty draw-down will also be a necessary criterion for trading Bitcoin.

On the other hand, Ethereum presents a much more stable and tolerable risk profile for trading, at least for the time being.

A quick glance at the Ethereum daily chart shows a very obvious symmetrical triangle that has been forming since mid-May. The pattern is now approaching the apex of the triangle. Furthermore, both the downward trend line on the upper side of the triangle, and the upward trend line on the lower side of the triangle pattern have been touched by price action on more the three occasions after a price swing to the opposite side (Refer to Chart #1).

Chart #1: Daily Symmetrical Triangle Pattern

This triangle pattern is perfectly set-up for a breakout. While symmetrical triangles do signal a likely breakout, the pattern displays the uncertainty that traders are experiencing, consequently the direction of the breakout is also uncertain. However, a closer look at the near term may offer a clue as to the direction of the impending breakout.

Chart #2: 5-minute Ascending Triangle Pattern

Chart #2 shows an ascending triangle on a 5-minute chart that has been forming over the last couple of days starting on November 11^th. An ascending triangle give strong indication that a breakout to the upside is more likely. Traders should watch for price to break through the resistance level at $329.36310, along with strong volume. Care should be taken in case a false breakout takes place. A stop-loss would be prudent at/or near the bottom of the last significant downward price swing of the pattern from the resistance level to the lower trend line (at about $324.00).

We will be updating our subscribers as soon as we know more. For the latest cryptocurrency news, sign up below!

Image courtesy of BTC Keychain via Flickr