Ethereum managed to shrug off a leadership challenge by Ripple as the top Altcoin. However, the ETH/USD is still looking for a new direction. A lot depends on one resistance line.
The Technical Confluence Indicator shows that the ETH/USD faces a dense congestion of resistance lines at $230. The cluster consists of the Simple Moving Average 5-one-day, the SMA10-1d, the SMA100-15m, the SMA10-1h, the SMA5-4h, the SMA50-15m, the Bollinger Band one-hour Middle, the SMA10-4h, the BB 15m-Upper, the SMA200-4h, the BB 4h-Middle, the SMA200-15m, the SMA50-1h, and the all-important Fibonacci 61.8% one-day.
If Ether breaks above this level, the next target is $251, where we see the SMA50-one-day, last week’s high, the Fibonacci 61.8% one-month, and the BB 1d-Upper.
Looking down, very strong support awaits at $225Â which is the convergence of the 1d-low, the BB 4h-Lower, the SMA50-4h, the SMA200-1h, and the Pivot Point one-day Support 1.
Further support awaits at $219Â which is the confluence of the Pivot Point one-day Support 2 and the Fibonacci 38.2% one-month.
Technical Confluence Indicator
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.
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto , and our FXStreet Crypto Trading Telegram channel
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.
Learn more about Technical Confluence
More:Â Latest cryptocurrency news
