Market Analysis

Ether Price Analysis: Historic Support Tested Amid Signs of Distribution

from The Bitcoin News 5 years ago 0 0 686

It’s been weeks since ether has seen a new high or a new low and the market has found itself range-bound. At the moment, we are seeing signs of distribution as large rounds of selling have remained present during key support tests:

It’s been weeks since ether has seen a new high or a new low and the market has found itself range-bound. At the moment, we are seeing signs of distribution as large rounds of selling have remained present during key support tests:

So far, for the last few weeks, ether has seen a trend of higher lows and low highs (the converging red trendlines). The three arrows shown above display the presence of heavy selling pressure (supply) and, so far, the market has failed to garner enough buying pressure (demand) to bring the price level back above the AR level shown above and buying pressure seems to be waning. The lower boundary of the trading range (the dark blue line) has proven to be strong support and the last week’s trend has seen relatively higher highs and higher lows. However, some key levels need to be monitored.

The high volatility and the high volume associated with the volatility is showing signs that the trading range might be in distribution. However, it’s still fairly early in this trading range’s life cycle and its entire possible this most recent strong round of selling is a test of demand.

On a macro level, this marks our second test of the current support level. The last macro ether consolidation was initiated at the price level and it provided very strong support through many months of tests. Because of its historical significance during ether’s last bull market, I find it unlikely that we would break straight support with such relative ease.

Much like the rest of the crypto market, we are basically playing the waiting game while etherbitcoin decides what it wants to do. It’s not entirely clear whether the support will hold or whether it will break, but ether is sitting atop macro support that has held through many tests. A decisive break below this level will be violent. However, if we can establish firm support here, it’s entirely possible ether has found its local bottom in an otherwise macro reversal.

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