Just like Bitcoin, Ethereum is surging past media-made milestone price levels. In this case, $500 was the price target perceived by the market media as news worthy.Ethereum’s brief foray above $500 on November 29. 2017 was immediately followed by a price retracement of just over 50% of the gains made in the current upward price move that began on November 2nd from $275.The daily price chart below (Chart #1) shows Ethereum’s last upward price move to a high of 519.23 with a Fibonacci retracement levels indicator.Price immediately retraced to just above the 50% level before consolidating at the 38% level close to where it is trading at the time of this analysis.Price has also closed below the 9-day moving average for two consecutive days, and today (December 1st) is setting up to do the same.
Chart #1: Daily Price Chart
In our last technical analysis review of Ethereum on November 28, 2017, we noted that Ethereum was exhibiting signs of strong momentum following the strong upside breakout from the Symmetrical Triangle Pattern.We also note that price-to-volume patterns exhibited positive momentum, hence the new highs above $500.Ethereum is now in the midst of pull-back, and is now setup for a long position entry. Price-to-volume patterns are now exhibiting downside momentum as shown in the 5-minute chart below (Chart #2).
Chart #2: 5-minute Chart
The price dips labeled by the blue arrows show downward price moves with corresponding spike in volume. The grey shaded area shows a period in which price was increasing while volume was diminishing.These patterns are the inverse of what we saw in our last analysis during the upward price move prior to exceeding the $500 price level.At the very end of the chart we see very weak volume for both up, and down price movements. This indicates uncertainty in the market, and potentially a shift in sentiment.When market sentiment begins to shift to positive up-side momentum, price-to-volume patterns will begin to show volume spikes that correspond with upward price movements (as seen in our last analysis). Couple this with price going above the 9-day moving average on the daily chart (Chart #1), and you now have a strong indication of the likelihood that the next upward price move is coming.The savvy trader will be patient and wait for price to move above the 9-day moving average with strong volume on upward price moves, then go long, or add to long positions on the next price dip.We’ll be watching closely.Featured image courtesy of Coinmarketcap.comDisclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
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