On March 7, the ETH price reached a high of ₿0,0274. It has declined rapidly since then, indicating it is in a downtrend. The nearest important support area is found at ₿0.02.
Highlights of ETH price
- Price has completed the redistribution phase.
- Support is available at ₿0.02.
- Price can follow a descending support line.
- There is resistance at ₿0.025.
The Wyckoff distribution theory shows that there is a corresponding effect for every arising in the market. Therefore, every accumulation period is followed by a period of increase, distribution and decrease.
Trader "TraderX0" outlined an Ethereum chart, stating that the price can follow these Wyckoff distribution phases. If so, prices are currently in a downtrend, expected to be even lower.
Beautiful market cycle playing out on $ ETHBTC - H4 timeframe
Distribution top during Feb - Mar
Mark down early march
Redistribution - aka throwback to the distribution break down level
And now what looks to be a second markdown leg playing out pic.twitter.com/OwycQ7Gii9
- TraderXO (@ TraderX0X0) March 17, 2020
Will ETH price fall further? Let's analyze.
Current movement
Starting from December 23, 2019, ETH price has started to accumulate in the range of ₿0.0175-₿0.0195. This lasted for 40 days, until the breakout on February 2, 2020, succeeding by a very rapid price increase that lasted for two weeks.
The next phase is redistribution, which looks almost identical to the inverse of the cumulative period and lasts about 29 days between the prices ₿0.025--0.028. Currently, prices seem to be in a downtrend.
The main support zone is found at ₿0.02, also supported by the presence of the 200-day moving average (MA). Therefore, it will be an optimal level for the bear phase.
The support line descending
A look at the lower time frame shows that ETH has been following the descending support line since February 20. If it continues to do so, the price is expected to reach the support zone of ₿0.020 by the end of March.
However, the current level may start a short bounce for three main reasons:
- The price is in a small support area formed by the previous long lower shadows.
- There is a significant bullish divergence developing in the RSI.
- The price is at the support line descending.
However, in our long term view, this recovery is expected to end at the resistance zone of .00.025 and the price is likely to continue falling to the support at ₿0.02.
In short, Ethereum price is likely to be in a downturn according to the Wyckoff distribution theory. The price is expected to reach the main support zone at ₿0.02. A short-term recovery towards .00.025 could occur first.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Annie
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