Ethereum Price Prediction: ETH/USD bulls are back in town and have a lot of support behind – Confluence Detector

By June 16, 2020Ethereum
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  • Ethereum is back trading above $230.
  • ETH/USD has many support levels on the way down.
  • Not a lot of resistance points towards $240.

Ethereum formed a fairly strong bullish reversal candlestick yesterday on June 15. Buyers are seeing some continuation today on June 16 but were rejected from the daily 12-EMA at $235.6. It seems that Ethereum has a lot of support on the way to $230, let’s check some of the most important levels.

Nearby the current price of $234, we find a support point where the daily SMA5, the hourly SMA10, and the previous daily high are converging. Lower, at $233, the middle Bollinger Band on the 4-hour chart plus the SMA 5 have established a decent support line.

Even lower, at around $231.4, the weekly Fibonacci 23.6% and the previous hourly and 4-hour highs are creating a robust support area for the buyers.

On the way up, ETH/USD will need to break $235 where the weekly Fibonacci 38.2% is currently established, but also the daily 12-EMA. Other than that, there aren’t many other resistance levels until $237 where the daily middle Bollinger Band is currently set.

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ETH/USD daily chart

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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.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacent 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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ETH/USD has many support levels on the way down.

Not a lot of resistance points towards $240. Ethereum formed a […]

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