Ether and Bitcoin Price Look for Direction After Last Week's 42% Rally

Over the past few weeks, Ether has tracked Bitcoin's price action and observant traders have deftly played reversals off double bottoms and back to back bounces at the $162 and $153 support.

A comparison of the daily and weekly charts of Ether and Bitcoin highlights a number of similarities, chiefly, the Doji candle set right outside the upper arm of a wedge pattern.

Ether, like Bitcoin, is consolidating into a tightening range as Bitcoin cools off and searches for direction after the meteoric 42% rally on Oct. 25.Crypto market data weekly view.

Let's take a look at the charts to see where Ether price might go.

Like Bitcoin, the Bollinger Bands are drawing closer together and Ether rides atop the middle moving average of the indicator.

This could lead to a move to $191, a 5% gain, and also give Ether the opportunity to set a lower high at $193. Ultimately, traders would like to see Ether set a higher high above $194, a point which also aligns with the 200-day moving average and the 61.8% Fibonacci retracement level.

Currently, Ether price action can be described as neutral, hence the neutral Doji candlestick directly outside of the descending wedge on the weekly timeframe.

Investors are well aware of the fact that Ether tends to follow Bitcoin's price action so its likely Ether could mirror whatever path Bitcoin takes as the weekly close approaches.

While this is encouraging, for the past 4-weeks Ether price has been capped by the 20-week moving average and it's clear that this moving average needs to be taken out before Ether can continue towards the 61.8 Fibonacci retracement level at $197.55.

Ultimately, either an increase in trading volume or a bullish breakout from Bitcoin is needed to push Ether's price higher.