Ether has seen 90% of its value deteriorated in the 24 month period from January 2018 till Dec 2019. For the past three months, however, prices have not made any new low & actually consolidating within a bigger range. The consolidation range is actually shrinking as evident from the symmetrical triangle shown in Exhibit 1.
Since price has already toppled its 100 day average, odds are higher that we are more likely to see an upward breakout in than downward. The first signal of strength will be a breakout above $150 levels as that will mark violation of the downward trendline. But the final confirmation of strength in will be above $162 regions, as that will see the end of the lower top series on daily chart.
Exhibit 2: Daily Chart of LTC
/USD (CMP: $59.50)
although saw a similar fate as other Crypto pairs in terms of 2018 bear market, it choose its own path post end January 2019, and started to put up significant strength after its February breakout.
It is quite evident from Exhibit 2 that has actually embarked on a nice upward trend and going forward it is likely to continue the journey upward. In a longer term perspective though, there could be some potential resistances in the regions of $63 & $67 regions while support exists at $58 regions. An important observation is that should hold above $54 levels for the intermediate uptrend to continue as a break below this will terminate the series of higher bottoms which is a hallmark of uptrend.
Published at Tue, 26 Mar 2019 07:13:37 +0000
