A bright spot as bears threaten to drive prices lower is the contrarian trade that is about to print in Ethereum. It’s ambitious, yes but could spell the beginning of a new phase of bulls slowing down sellers and helping markets recover. Should ETH close higher, then Ethereum Classic (ETC) could follow suit now that UTrust has announced support.
Let’s have a look at these charts:
Ethereum (ETH) Price Analysis
The recent ETH tailspin has been damaging for many portfolios and it’s only naturally for affected investors to take to social media to express their two cents on the matter. However, in the midst of all the emotional filled opinions, sense prevails in Kevin Rooke, a cryptocurrency researcher and analyst. According to his research, ETH liquidation isn’t stopping any time soon and could be disastrous for price should ICO fund managers liquidate their $600 million worth of ETH in coming months.
In his eye opening findings, Kevin notes that this month’s expenditure of ETH has been the highest in five months tallying well with separate findings from Santiment, a crypto analytic service provider. Worse still, there are no “useful” dApps on the Ethereum network that could draw value. Further fueling the decline is Arthur Hayes literal encouragement of his followers to trade ETH/USD pair on margin at his BitMex exchange.
A 25 percent decline by end of Sep 12 saw ETH prices trading below the all important $200 mark but the sell party might be coming to an end. Considering all the noise of ETH sells, we shall take a contrarian approach mainly advised by yesterday’s event. After all, it’s up seven percent in the last day.
Notice that Sep 12 candlestick ended up as a pin bar with a remarkably long lower wick and behind the rejection of lower prices were high trading volumes.
In normal situations, this would have lead to a rapid depreciation towards our ultimate bear targets at $150 but prices were relatively stable absorbing bear pressure. Because of this, we recommend exiting part of ETH sells and fading the market at spot price with targets at $250 with stops at $165.
Tron (TRX) Price Analysis
Vitalik opinion that it will be hard for the cryptos to print 1000X gains in the near future caused a Twitter storm. And Justin Sun couldn’t hold his thoughts. In a tweet that got a response from Buterin, Sun believed that the entire world will turn into cryptocurrencies like a “black hole”. He added that before Google and Amazon reach the $1 trillion market capitalization, cryptos would be recording market caps upwards of $10 trillion. Though we agree with his assessment, only time will tell knowing that any figure near that market cap means a super rally is on the cards.
Like most coins under our preview, TRX prices are stable to say the least. Though registering reds, prices are stable and bears are yet to drive prices below Aug 14 lows triggering sells as laid out in previous TRX trade plans.
As such, we recommend taking a neutral to bearish position of TRX because of a prohibitive risk reward ratio preventing traders from executing trades in an uncertain market.
Thanks to a slight recovery in altcoins yesterday, chances are we might see gains today and in that case, aggressive traders can initiate longs at spot prices with stops at yesterday’s lows at 1.6 cents. Targets should be at Sep 5 highs at around 3 cents.
Cardano (ADA) Price Analysis
According to a recent update by Charles Hoskinson, the Cardano development team is of the opinion that human readable addresses shall mass adoption due to obvious benefits and ease of use. This is why the team is working on making this a reality. On the same mass adoption vein, Emurgo—the business development wing of Cardano announced that Metaps shall integrate ADA by November this year making it possible for users to make purchases using ADA in more than 33k business across South Korea.
A six percent drop by close of Sep 12 candlestick did drive prices below ADA’s ATLs at 7 cents. As seen from the chart, though we have a long lower wick, yesterday’s candlestick did close above 7 cents triggering our sells as laid out in previous trade plans.
Though there is a divergence, I recommend trading with our initial plan and that means selling at spot price, placing stops at 8 cents and letting this trade run until solid reversal patterns begin print. In the meantime, any high volume surge of prices above 8 cents nullifies this sell stance.
Monero (XMR) Price Analysis
To reiterate, Monero is at a precipice and still trading within a down trend. Luckily though, Monero is finding support and is up three percent in the last day. Better still, bears didn’t push prices below the monthly support trend line and $100.
However, should there be a dip below $100, we suggest trading on break outs with stops at $110 and targets at $70 in line with our last Monero price analysis. On the flip side, any high volume spike that will see prices racing towards $110 shall nullify this projection.
Ethereum Classic (ETC) Price Analysis
From the charts, aside from adding three percent in the last day, the coin is moving in the direction set by Sep 5 depreciation which saw ETC sellers rejecting higher highs and reversing gains above $12.
However, what should steel bulls is hints of higher highs in lower time frames as buyers seems to make inroads all thanks yesterday’s long lower wick. If anything, sellers did retest Aug 14 lows and a more cautious approach before executing trades is to wait for how today close.
If price do close high then we suggest taking longs only when bulls print above $12. In that case, targets would be at $15 and later $18, the upper limit of our last trade range.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.