According to Reddit and Twitter user ScienceGuy9789, Ethereum was meant to break out today on April 24, 2019, a topic which we have been covering quite closely. However, it appears that his analysis was not as accurate as he had predicted, as Ethereum has dumped by a total of 5.73% over the past 24 hours of trading. His prediction began in March, when he tweeted the following;
ETH should be breaking out by April 24th pic.twitter.com/z8lwk9zMHY
— ScienceGuy9489 (@ScienceGuy9489) March 11, 2019
Of course, the crypto markets are fickle, and ScienceGuy9789 can be forgiven for making a wrong prediction so far in advance. However, he continued to double down on his April 24 breakout prediction, posting the following comment on Reddit a few days ago:
Although Bitcoin fell slightly today by around 1%, the price drop for Ethereum has largely been due to the steep decline experienced in the ETH/BTC market. Over the course of April 2019, Ethereum has been falling hard against Bitcoin, and recently reached the support area around the 0.030 BTC level.
Cryptocurrency analysts often face a large backlash after getting such a large prediction wrong, and ScienceGuy9489 is no different. Users on Reddit have been posting a string of memes in the /r/Ethtrader subreddit today. Reddit user Ethical-trade posted the following meme:
Meanwhile, another Reddit user called mqrasi posted the following:
Users in the comments have also been chiming in. Some have pointed out that ScienceGuy9489 has gotten predictions wrong before, and are confused as to why he has such a large following.
However, everybody does not feel the same way. Some users understand that SciengeGuy9489 is just providing his analysis, and it is up to us whether or not we take his insights to heart.
Whichever way you look at it, ScienceGuy9489 has gotten it wrong this time around. Technical analysts can only provide information based on their findings when conducting analysis. It is up to individual traders to choose whether they take action based on the given analysis. Although there is still some time within the day for Ethereum to turn around, it is highly unlikely that this will occur.
Let us take a look at the Ethereum market and highlight some potential areas of support and resistance moving forward.
Ethereum Price Analysis
ETH/USD – MEDIUM TERM – DAILY CHART
Etheruem has seen an impressive bull run throughout the past 90 trading days after being able to surge by a total of 40%. The market penetrated above the 100-day moving average at the start of April 2019 and rose into a fresh 2019 high, as it approached higher resistance around the $185 level.
The market was unable to overcome the resistance at $185 and proceeded to roll over. In the recent price decline today, ETH/USD dropped into support around the $165 level, where it is currently sitting comfortably.
The recent price decline has now caused the RSI to slip back beneath the 50 level, which indicates that the bears have taken control of the market momentum and that further price declines may be on the horizon.
Where Can We Go From Here?
If the selling pressure continues and causes ETH/USD to break below $165, we can expect the nearest level of support below to be located at the $160 level. This is followed with more significant support at the $152 level, which is bolstered by the 100-day moving average that currently hovers in this area.
The sellers would require significant volume and momentum to break back beneath the 100-day moving average. If they do manage to break below, we can expect more support to then be located at $145 and $140.
Alternatively, if the buyers manage to hold the support at $165 and cause the market to reverse, we can expect immediate resistance above to be located at the $170 and $185 levels. The resistance at $185 contains a 1.272 Fibonacci Extension level, adding to the expected resistance in the area.
Above $185, the market will meet resistance at $194 before being free to test the $200 price region.
Although ScienceGuy9489 got his prediction wrong this time, the crypto community should ease up on him. It is nearly impossible to get every prediction correct in trading, and therefore we should not be surprised if the analyst sometimes ends up on the wrong side of the prediction.
At the end of the day, Ethereum has still enjoyed a significant surge over the past few months, which any rational investor should be delighted by. If Ethereum can get its act together against Bitcoin, we could expect ScienceGuy9489’s prediction to still come true, even if it is a little bit later than expected.