Ethereum (ETH) – Course Analysis KW20 – Does the Handle Hold?

As with all other crypto currencies, the Ethereum rate fell last week. On May 12th it fell to 535 Euros, returning to the end of April level. Since then, the course has recovered somewhat and entered a triangle pattern. The Cup-and-Handle Pattern still holds accordingly.

The Ethereum price fell this week for the crypto trader

After the crypto trader price fell back to the level of the end of April and thus to the bottom of the forecasted handle, the price entered a triangle pattern like this

Overall, the assessment is bearish. The most important support is 533.95 euros, the first resistance is 616.22 euros.

Last week it was advised not to open a long position until the price either bounced at a support or breached the resistance. So if you haven’t taken a long position, you’ll be quite lucky; there was really no money to be made from the neutral outlook at the time.

In the meantime the course has even bounced off a support. Since then it has been moving sideways in a triangle pattern. With last week’s negative price development, the hypothesis of a cup-and-handle pattern can in principle be maintained:

So a little of the above mentioned support is decisive. The indicators on the 4-hour chart are a cause for concern:

The MACD (second panel from above) is negative and bearish. The MACD line (blue) is below the signal (orange), the latter is about to fall below the zero line.

The RSI is at 44 and thus bearish. Overall, the price, trend and indicators are bearish according to the situation.

Support and Resistance

The first support is 533,95 Euro and is described by the minimum of May 12th. The further support is defined by the plateau from 21 to 22 April at 493.03 euros.

As first Resistance the plateau offers itself from 14. May to 15. May with 616.22 euro. A rise of the price above this level would lift the price in the direction of higher prices from the triangle pattern. A further resistance is at the height of the monthly maximum at about 680.00 Euros.

Entry Points, Stop Losses and Targets
The bearish assessment invites to a short position. A good entry point would be 572.87 Euro, i.e. in case of a negative breakthrough of the triangle pattern, targets would be at the indicated supports and for a stop loss the first resistance would be 616.22 Euro.

If the price bounces off the support of the triangle pattern, opening a long position at 616.22 Euros would be the best option. A meaningful target would be the second resistance at 680.00 Euro and a meaningful stop loss would be defined by the EMA50 at about 600 Euro.