Ethereum Price Analysis: ETH/USD Produces Daily Gravestone Doji Candlestick; Here Come More Bears
- The Ethereum price is at risk of giving back the large gains from December 2018 – January 2019.
- Saturday’s daily candlestick closure produced a bearish gravestone doji.
The Ethereum price has continued to be a victim of narrowing trading, however signs are starting to show of the bears readying to regain full control. ETH/USD has been stuck within consolidation mode since 11th January, which has very much been observed across the crypto market. Over the last six sessions however, the range has tightened up even further. This type of behavior signals that an explosive breakout is near. Odds appear to be stacked in favor of the market bears for the next move.
At the close of Saturday’s close, a bearish gravestone doji was produced. Going by the textbook, this typically suggests another drop is imminent. Another deep drop wouldn’t be too surprising, given the hard fall earlier in the month. A fast period of aggressive market selling is usually followed by some range-movement, which its way of having a cooling off period. The pickup in downside momentum, after such a development, this time with greater intensity, is something that could very well be seen.
100% Reversal of December Bull Run
The ETH/USD bulls enjoyed a big run to the north from 15th December 2018, up until 7th January 2019. The price had gained well-over 100% during this storm higher. On 7th January, the strong bullish momentum lost much ground, after breaching a key trend line. This was a key a part of the gains produced in December, as it was providing needed comfort. Any minor downside was cushioned that by this running support. The price had broken out and retested underneath the trend line for a brief period before being hard hit with sellers on 11th January.
It appears the price is heading for a big correction of the above-detailed December-January advance. Another factor that has not helped the Ethereum price is the delaying of the Constantinople upgrade. As previously reported, this has been delayed until the back end of February. The price was pumping up on much anticipation and excitement from the community heading into the originally scheduled upgrade this month. ETH/USD is heading back for a big retest of the psychological $100 mark.
Given the current technical price behaviours, it is worth noting the key levels of support. Firstly, just ahead of the $100-mark, daily support can be observed at $102. Should the bears manage to force a breach here then a full reversal of the December gains could quickly materialize. This would see the December low area, around $83.10 at risk. On 7th and 15th December, ETH/USD touched this level, proving to be the bottom, after heavy selling from the start of November. Further to the south, the $65 territory is the next target. This has not been in play since May 2017.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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