Given Bitcoin’s recent price surge, the question that is on most trader’s minds right now is:
‘Will Ethereum and other coins follow suit?’
This price analysis will seek to answer that question.
Ethereum Price Analysis
Upon initial inspection of the Ethereum chart, we can see that the price failed to surpass the EMA-50 on the daily resolution:
A failure to breach the EMA-50 is almost always a negative sign for bulls in terms of impending future price action for the asset in question.
However, there is another notable observation on the chart (see below):
As we can see in the chart above, Ethereum has formed a very clean triple bottom, which is a rare, bullish reversal pattern.
For those that are unfamiliar with this chart pattern, the next section explains how it works in greater depth.
What is a Triple Bottom?
Taking a Closer Look at Ethereum on the Daily Resolution
In light of the possibility of a triple bottom formation for Ethereum developing on the daily resolution, we’re going to take a more critical look at the price action for Ethereum below:
In the above picture, the following can be observed:
- The uptrend that Ethereum was in prior broke on July 10th, 2019. This led to a -32.35% drop in the price.
The overhead resistance at $237 is the mark that Ethereum must surpass if it is to fulfill the triple bottom formation.
Zooming in on Ethereum
If we zoom in a bit closer on the price for Ethereum, we can see that the bounce has not quite happened yet.
Traders must be wary because a drop below this level could mean a precipitous fall for Ethereum.