Sirwin
Sirwin

Ethereum Forms Tightening Ascending Wedge (3/19/21 Forecast)

By Biz Wisdom | Crypto Daily FX | 19 Mar 2021


Ethereum fell a bit on Thursday, reaching up to the $1,850 level early on before pulling back below $1,800, closing the daily candle around $1,770. This is a mildly bearish candle as ETH was rejected off the upper trendline of what appears to be a tightening wedge forming, leading us to believe that the triangle will soon complete and resolve in a dramatic move up or down.

58d5242def6f53331dd30b08b54487bd055311666417e66d8bea633db2313be1.png

(March 18, 2020 8:30 PM EST)

Short-Term:

ETH formed a nice V-shaped recovery and has been in a $200 trading range between $1,700 and $1,900. If you zoom out a bit and look at the chart above, you can see ETH has been forming a tightening triangle pattern but with a sharply rising lower trendline. This trendline of higher highs and higher lows indicates a BTD market sentiment and more often than not breaks to the upside when the tightening wedge finally resolves. As you can see in the chart above, this pattern is quickly closing and the candles have gotten progressively smaller, so we could potentially see a breakout higher as early as this weekend, which would be consistent with major crypto moves in recent weeks. 

If ETH gets rejected at $2,000 or sells off, we could see ETH pull back to the 50 Day EMA around $1,500 which is typically the floor of a bull market, which would be another higher low. 

 

ETH/BTC:

ETH continues to struggle against BTC as it fell below the 200 Day EMA around 0.031, settling Thursday's candle around 0.039. All eyes will be on 0.03 as the final support level before a precipitous fall to the next support region around 0.025, a bearish fall from grace in satoshis. This is not bearish in terms of ETH/USD as ETH can double or triple in USD price but maintain the same BTC ratio if BTC goes parabolic, as we have been expecting for Spring-Summer 2021. Like previous cycles, typically Bitcoin leads all of crypto and alts 'catch up' later, of which ETH would lead the altcoin pack. Typically, ETH doesn't peak in BTC or USD values until 2-4 weeks after Bitcoin puts in a market cycle top, giving us assurance that ETH is still relatively early in this bull market phase and that sub-$1,800 is excellent medium-long term value. 

If ETH/BTC peaks around 0.1 or higher as it historically has done in previous crypto bull cycles, ETH is set up for a conservative 300%+ price appreciation from current levels ($5,400+).

b25f254a170a4577f84d79209589847321fcc6d31634e194d93e0e089a1f4249.png

From my perspective, all signs indicate it's probably wise to buy ETH or earn ETH now before prices continue to ascend in dramatic throughout the rest of 2021 and further. Buying ETH under $2,000 is like buying Bitcoin under $30K; not much higher than the previous ATH, and not likely to last much longer. 

Support:

$1,600, then $1,500, then $1,400.

Resistance:

$2,000, then $2,500, then $3,000. Pay more attention to the ETH/BTC ratio for resistance levels. 

 

Please support the channel by "Tipping" this post below, or using either of these referral links.

Buy Ethereum here.

Earn Ethereum here

Cryptocurrency

How do you rate this article?

16


Biz Wisdom
Biz Wisdom

Big questions. Anonymous answers.


Crypto Daily FX
Crypto Daily FX

Your Daily Support to Break Resistance.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.