Ethereum, Apollo Technicals; December 17, 2018
Konstantin Kaiser | Dec 17, 2018 11:07AM ET
While not many expected to see Ethereum ever drop down to double-digits again, it even went as low as $80 so far. Although it is recommended not to try catching a falling knife, every heavy price drop or surge is followed by a correction wave. With the current outlook of Ethereum, we might see such a correction very soon. Let’s dive right into the technical analysis.
Ethereum failed to hold its support at $84 but tested the $80 mark two times without breaking through. While the broken support seems bearish, the RSI is indicating a bullish divergence with a series of higher lows while the price is declining heavily with a strong volume. Having said that, the RSI is about to form its third higher low while the MACD crossed bullishly and withstood the re-test. This indicates that a correction wave towards the upside is overdue, and as such, we can expect a re-test of the $100 mark soon enough.
Ethereum is exactly at the channel support and still at the weekly support zone which ranges down to $70. With the weekly RSI being as low as 28, we can expect a bounce off of the channel support in the near future. The bounce could even re-test the $150 range.
After a heavy price drop of nearly 86 percent since its exchange launch on the 28th of July, Apollo is ranging between $0.00042 and $0.00056. This consolidation phase indicates that Apollo found its bottom, and we can expect further sideways movement. While this is indeed a very good sign for the price development of Apollo, one should wait for a strong increase in volume during a test of the channel resistance to confirm the bullish momentum. If the price manages to break the channel resistance with a high volume, it would be a good moment to consider an entry above the channel resistance at $0.0056. However, the prolonged bear market could drag Apollo down and it's possible that it will be going on for a very long time. Nevertheless, the bullish arguments after confirmation outweigh the bearish ones. With the current outlook, it’s advised to wait for confirmation.
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It is noteworthy that Apollo currency is the most feature-rich cryptocurrency and that's because of its unique features such as phased transaction feature, file transfer and also its voting system.
With a transaction speed of one to two seconds, Apollo's blockchain is outstandingly fast compared to major cryptocurrencies such as Ethereum (15 seconds), Bitcoin (10 minutes) and Stellar (5 seconds).
Additionally, as soon as the sharding feature is added the transaction time will be reduced to sub-seconds. This makes Apollo an interesting cryptocurrency to watch.
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