Ethereum Technical Analysis – Uptrend Continues

In our last analysis of Ethereum dated November 13, 2017, we pointed out the Symmetrical Triangle pattern that was forming and coming to completion. It appears that Ethereum is showing indications of an upward price movement.

First, before delving into the technical analysis, we should mention some important recent news that may be driving the technical indicators.

During a recent Ethereum developer meeting, Ethereum founder Viatlik Buterin announced that the proof-of-stake protocol under development known as Casper, with which Ethereum hopes to eventually replace the currently proof-of-work protocol used by the nodes in the network to come to agreement on a correct transaction history to be added to the blockchain, is ready to be tested. This could be a significant factor for the recent price actin exhibited by Ethereum.

Chart #1: Daily Price Chart

On the technical analysis side, Chart #1 above shows clear indication that Ethereum has broken out of the triangle to the upside.

Some noteworthy indications that the breakthrough is credible is the fact that price has been fluctuating completely above the 9-day moving since the breakout.

What makes this observation notable is that all four data points of the daily bars are above the moving average, suggesting strong upside momentum. Couple that with the fact that that the breakout has already exceeded the high of the last price upswing in the triangle pattern as labeled in the chart, and you have positive signals that the potential for an extended upward price movement is likely.

Chart #2: 5-minute Chart

The daily chart on Chart #1 does show some indication of increasing volume on the latest bar.

Chart #2 above displays the 5-minute price chart which shows a much better view of how volume is increasing in tandem with the most recent upward price movements (shown in the shaded area).

Volume is always the final deciding factor on whether or not technical indicators are credible. In this case, the breakout seems to be gathering interest (volume) and momentum.

Savvy traders that are already holding long positions will continue to hold them, and possibly even add to them on price-dips. Those that don’t have positions may consider taking long positions on price dips.

A protective stop should be place no lower than the point of the low of the last downward price swing in the triangle pattern near $280.00.

Traders that have short positions should consider re-evaluating their current trades.

We will be keeping a close watch to see how the breakout progresses.

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