Ethereum 360 #20: 9th August 2021
Hello everyone, welcome to a new installment of Ethereum 360! Another analysis under the green flag after the second week of rise on the crypto market. Let’s take a look at ETH in this 100% technical analysis market review!
Rise accompanied by volume
Ethereum has been thriving for several weeks. The W-formation propelled the price up coupled with an increase in volume. ETH broke through the resistance and rebounded off of it to reach the middle of the range. With this move ETH has retraced 50% of its decline.
The momentum is strong; the price has hardly pulled back during the rise. High volatility can cause the price to plunge, or it may as well continue to rise.
Take a look at the OB (Order Block) located on the ascending support line. This area could be of interest to buyers and act as support. Anyway, it’s important to ride the wave and not short the market.
On the four-hourly chart, we can see this already well-established trend. We can draw support lines for the price.
The lows are getting higher and higher, same with the highs.
Once the top is defined, drawing a Fibonacci retracement could be interesting to get a bearing on the levels most sought after by market participants, and take advantage of a potential retracement.
Rising volumes support the upward trend. The volumes, in their turn, impact the price. A drop in volume could be the first sign of weakening this bullish momentum.
Finally, the one-hourly chart shows a bearish divergence. The overall trend remains bullish, so it’s not too important.
A broken down support caused a slight fall of around 6%, but the price, supported by good volume, quickly recovered. The price has since been under resistance, struggling to break yesterday’s highs for now.
Breaking them would mean continuing the bullish trend!
That’s it for this installment of Ethereum 360! Remember, never invest more than you can afford to lose and DYOR. Happy trading and see you next time!
Passionate about technical analysis and technology, I have been diligently following cryptocurrencies since 2017. Beyond trading and investing, I try to democratise, in my own way, the ecosystem that will undoubtedly change our habits in the future!