Ethereum: weekly market analysis (from 1 January to 7 January 2020 on a BTC / ETH pair)

Yesterday the price of ethereum reached 0.01894BTC and was promptly rejected by the bears; the price at the moment is basically on the same levels as a week ago so, even if my forecast last Tuesday turned out to be excessively pessimistic, I wouldn't say it was entirely wrong. The feeling that bears will soon be in control of the market is strong enough; so let's immediately take a look at the graphs and try to understand together whether ethereum is really reversing or if instead what we have witnessed is nothing but a retracement.

BTC / ETH bulls rejected with losses

We start as always from the 30D chart which allows us to immediately see how yesterday's hikes sent the price to test the pivot point without being able to break it; as we have written on several occasions it is quite usual movements and, at this point, the most obvious thing we can expect is a S1 test in the 0.01630BTC area.

Turning to the weekly chart, we focus on the last minimum, placed in the 0.01615BTC area, which is now a crucial support, if in fact the bears were able to break it we would witness a heavy fall in prices; Finally, looking at the 1D chart and the strong bearish pressure that we have already experienced today, the feeling we get from it is that the price is returning from where it started, that is around 0.01730BTC.

This is a very important price range because it could give rise to a rebound that could potentially launch the price up to 0.02BTC.

Weekly forecast

Personally I would advise against operating on ethereum for the simple reason that we are caught between a series of supports and resistances without particular certainties as to which of these price levels will be broken first.

The advice, therefore, is to stay out of the market and keep an eye on the resistance placed in the 0.01894BTC zone and the support in the 0.0163BTC zone, patiently waiting for the price to break one of these two price levels to allow the trend to take a clear direction.

As mentioned in a short-term perspective I think Ethereum is bearish at the moment, but it is still not possible to exclude a rebound in the 0.0173BTC area with a break of the last weekly maximum and a rise to 0.02BTC. 

Please note: this post is not intended to provide in any way financial advice related to how to invest your money but it is purely educational

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