Ethereum, the second cryptocurrency in market capitalization, continues its free-fall. Various regulatory issues have hurt the broad cryptocurrency world and Vitalik Buterin’s disparaging words have sent the ETH/USD to new lows. What’s next?
The Technical Confluence Indicator shows that the first resistance line is at $175 where we see the convergence of the Pivot Point one-day Support 1, the SMA 5-one-hour, and Bolinger Band 15m-Middle, the BB 4h-Lower, and the one-day low.
Further up we see a stronger line at $180 which is the meeting point of the BB one-day Lower, the Simple Moving Average 5-4h, and the BB 15m-Upper.
The most substantial resistance is at $185 where we see the confluence of the all-important Pivot Point one-week Support 1, the Fibonacci 38.2% one-day. A recovery above this line will return the blood to bulls’ faces.
Looking down, support lines are far and few between. At $163 we see the Pivot Point one-day Support 2. Lower, $153 is the Pivot Point one-week Support 2 followed by the PP one-day Support 3.
All in all, there is more room for further falls.
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Here is how it looks on the tool:
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
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This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
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