Ethereum (ETHUSD) Analysis and Forecast (Mon, Oct 1st, 2018): Bull trap?

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A new bull trap is forming on Ethereum price, or the bears have been dying down?

From the news we have:

Over last weekend, Jay Clayton, Securities and Exchange Commission (SEC) Chairman, was addressed by the U.S. Congress to propose SEC’s plan to regulate digital currencies. Accordingly, a group of the lawmakers request Clayton to provide clearer guidelines for identifying which digital assets are securities and which are not. The congressmen reportedly said  that there should be a concretely formal guidance released by SEC to clear up all the uncertainties surrounding this country’s innovative technology development regarding digital asset issuances.

No significant impact was found on cryptocurrency market despite this relatively positive move from the U.S. Congress. ETH just witnessed a slight increase in its value and currently is trading at $230 against the U.S. dollar.

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Ethereum (ETHUSD) D1 chart on October 1st, 2018

The right shoulder of Head & Shoulders pattern seems to have been formed on Ethereum price chart. The 2nd-largest cryptocurrency by market cap is supposed to slide down from the 50.0% Fibonacci retracement, piercing through the minor ascending trendline (the green line). However, it would be a freak-out in Ethereum price to retest the neckline and this decline may be capped by the support of $221.

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Ethereum (ETHUSD) H4 chart on October 1st, 2018

We expected a nice upward movement in Ethereum price afterwards with the 61.8% Fibonacci retracement level is supposed to be reached. If the sellers can’t defend this level, a target at $280 will be totally probable, in a long term of course.

In a worst-case scenario, the buyers lost its ground at $221, the freak-out expected will turn into a downside breakout.

Featured image by Hedgeye

Written by nami.today

 

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