Ethereum price has once again tested the 423-reversal zone boundary. It seems like the market is getting ready to establish a new low. A new inside bar is also in place and if the 442 high is taken out, it will start a buy trigger. The next leg higher may run into 500’s resistance zone.
If BTC maintains the higher low, we should expect a new wave of bullish momentum generally.
The inverted head and shoulder pattern in BTC shows broader strength. This pattern kind can be expected in high probability reversal locations such as BTC. If the digital currency tests 6850, it will coincide with the minor resistance of 494 to 518 that is being tested. The result will be a bearish trend line along the 470s and this adds to the bullish argument.
The market appears more compelling because of the attractiveness of the risk/reward. The risk can be calculated from the 392 low or 417 low. From the present levels which is anywhere from 14 to 40 is risky while the potential reward is approximately 60 points
Which cryptocurrencies are safe to trade this week?
- Any other crypto that is trendy and trades a high volume such as EOS.
Any other cryptocurrency is risky at this point.
Ethereum Price Analysis
The price has bounced off the dropping wedge to the north with lots of resistance. We can get a home run if we break above the resistance and upper purple line.
Ethereum (ETH) Price Today – BTC / USD
However, if prices stall and drop into the falling wedge below $418, buy the dip. This is a worst-case scenario, no need to panic. If it happens, then BTC must have risen to $3k. you should be ready for anything, so set your buys around the buying zone so that you’ll make some profit when ETH goes to $1k after a few months.