During the week of November 17-24, the Ethereum price decreased by 25 percent. This was somewhat atypical since the rate of decrease was higher than that of Bitcoin — which has not been the case since September.
Ethereum, which is the leading smart contract platform, has a hard fork scheduled for December 4, preceding the proposed Istanbul hard fork. It is possible that we will see significant market movement in anticipation of the event.
One Ethereum whale might be getting ready for a major move since a transfer of $35 million was recorded yesterday. The fee for this transaction was only $0.07.
Based on its current trading pattern, the long-term Ethereum chart looks primed for a breakout. However, a short-term decrease could occur prior to it. Trader and market analyst @BTC_JackSparrow stated that there are two possible outlines for ETH’s future movement:
- In the first one, Ethereum drops to ₿0.02 before quickly resuming its upward movement.
- In the second, the drop is steeper as the Ethereum price goes down to ₿0.019.
— Bitcoin 𝕵ack (@BTC_JackSparrow) November 25, 2019
Ethereum’s Trading Range
Ethereum has been trading in a range between ₿0.025 and ₿0.019 since September 16. It reached the support area at the end of October and has been increasing since.
Looking closer at this movement, we can see that ETH broke down below an ascending support line before increasing to validate it as resistance.
Also, the Ethereum price is trading between the 50- and 100-day moving averages (MA). Judging by the previous movement, it seems that ETH will decrease below the 200-day MA and reach the support area at ₿0.019.
This view is strengthened by the inverted hammer with the long upper wick that validated the resistance.
Looking at the weekly chart, we can see that Ethereum has been trading inside a long-term descending wedge since September 2018.
Once it reached the support line of the wedge in September, it began the current upward move. The strong weekly bullish divergence suggests that ETH will eventually break out.
Additionally, the RSI low of 23 is the lowest since 2015 — indicating that a long-term upward market cycle might soon begin.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Shutterstock, TradingView.
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Source: Be In Crypto