The past few weeks have been bad for Ether and Bitcoin – the two coins managed to rally and surge by over 42% but only for a short while. As we can see from the analysis and ETH news, both of these coins are vulnerable and are going near their bottoms in the sideways trading session this Sunday.
The back to back bounces for Ethereum (ETH) are still in as the cryptocurrency traces towards the $162 and $153 support. A comparison of the daily and weekly charts shows that both ETH and BTC have a number of similarities. The Doji candle is one of them – currently set right outside the upper arm of a wedge pattern. Ether and Bitcoin are consolidating into a tightening range as BTC cools off and is looking for direction after the meteoric 42% rise on October 25.
What’s also interesting, as the latest Bitcoin news updates show, is that the weekly close is approaching and traders are probably enjoying the weekend while waiting for the candle close to provide insight in which direction the market might go forward. When looking at the charts, we can see the direction of ETH nicely.
Meanwhile, similar to Bitcoin, Ether trades outside of a descending channel (wedge for Ether) in a close and tight range. From the daily timeframe, we can see that the 12 exponential moving average (EMA) has pulled slightly above the 26 EMA and the volume profile visible range (VPVR) clearly shows that.
Ether and Bitcoin need to clear new prices in the following months. ETH needs to clear $184.27 and $185.12 in order to gain above the high volume node of the range. As custom over the past weeks, double bottom patterns have provided pleasant results before this and the recent bottom of $177 for Ether was followed by a successive 4.30% gains.
Just like Bitcoin, the Bollinger Bands for ETH are drawing closer and the cryptocurrency rides atop the middle. In other words, a move to $187 would mean that the high volume nodes are cleared which could lead to a move to $191 with a potential 5% gain.
All in all, the ETH/BTC pair looks relatively unchanged but needs to change soon. Ether and Bitcoin should look for new heights and spark investor interest in the coming days and weeks.
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