ETH/USD: A clear break above $230 is critical for Ethereum bulls
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ETH/USD: A clear break above $230 is critical for Ethereum bulls

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 $225  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 $219  which is the confluence of the Pivot Point one-day Support 2 and the Fibonacci 38.2% one-month.

Click to see the Full Confluence Indicator

Here is how it looks on the tool:

ETHUSD Technical confluence October 2 2018

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.

Learn more about Technical Confluence

More:  Latest cryptocurrency news

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.