Ethereum Building Up Potential for Another Price Bounce - Price Analysis

It seems that the major altcoins are moving in sync, as Ethereums (ETH) charts look nearly identical to Litecoins (LTC). Both are showing some strength on high timeframe (HTF) charts, and both are working on securing buy support for their second legs up on the low timeframe (LTF) charts.

As we have often covered lately, Ethereum has been desperately searching for a bottom to its downtrend after capitulating during the summer into lows not seen in years (on its ETH/BTC chart). We got a nice bounce last week, and the market is now trying to decide whether or not to put in a higher low.

Support at the 55?ETH chart by TradingView

Price is currently holding on the 55 exponential moving average (EMA) on the 4-hour timeframe. This would be a good place to hold, and the 55 falls near the 0.382 Fibonacci level. But we dont really see the volume coming in at all; nor does the histogram seem to be cooperating, but rather is arcing back down after flattening out.

On the 12-hour, the 21 EMA takes the place of the 55 EMA on the 4-hour, leaving us with the same range - again near the 0.382. Its pretty clear that this level - precisely, at around ₿0.0174 - is the key area to watch. If ETH can hold here, we are likely in for a nice second leg.

Support at the 21?ETH chart by TradingView

On the indicators, the histogram doesnt look too bad: it is trending down after a nice hill in positive territory, but not arcing down. This suggests a possible reversal soon. The MACD is pointing up and nearing positive territory as well. Volume is very low, however.

Finally, on the USD pairing 12-hour chart, we see that the histogram here has already started to arc up. Price is being supported at $178 at time of writing, and buyers have not let price close far below this mark at the 21 EMA. Volume is, again, weak, and this seems to be the final flaw in the bounce narrative.

No close under $178 for nowETH chart by TradingView

There is definitely a play to watch here. With Bitcoin dominance at what some might call seriously overbought conditions, we naturally look t ...

Read full story on CryptoGlobe

Tags: Chart, ETH Zurich, Ethereum, Price, Time, Litecoin, We Got, United States dollar, Bitcoin