Ethereum 360 #5: 31st May 2021
Hello everyone, I’m back at you again with Ethereum 360. As always, there’ll be on-chain analysis followed up by TA. I’ll try to fill you in as much as I can on the ETH price action over the past week: resumption of the uptrend or dead cat bounce?
Kaiko Data has been on alert about Ethereum’s high volatility of recent weeks.
Whether you’re trading Bitcoin (BTC) or Ethereum (ETH), you have to be very careful. Prices are moving rapidly and are likely to liquidate many people very quickly. Be careful if you are using leverage!
For people who want to invest, but do not know when and how, I recommend dollar cost averaging (DCA), which involves setting a recurring purchase (every month, every week) to smooth out your entry price and counter this high volatility.
ERC-20 tokens booming
This second chart is not necessarily important for today’s analysis, but I thought it was nice to share it to show the top ten tokens on Ethereum. This testifies to a craze for these projects and a sustainable growth beyond merely a speculative aspect.
Sideways action after a sharp decline
The overall trend is still bullish despite the sharp drop in recent weeks. We are forming a W above $2,000 on the four-hourly.
What stands out on this chart is that the moving average ribbon may stop the price going higher.
If this is not the case, ETH is set to regain its short-term uptrend. Yet, the moving averages, as well as the $3,000 resistance level are making me reluctant to buy at these levels. If we break them, the target order block (OB) can be found between $3,300 and $3,600.
Despite a ranging price that might signal a move higher, many obstacles may block ETH’s progress and prove the buyers wrong.
We see a similar situation on the hourly, where the price is meeting resistance and is not far from the last high point: a source of liquidity.
I can see a retreat to imbalance on the cards, which will help ETH coil up for a decisive move up. If we break, it will be good news for the bulls.
As I said above, we are still below all the moving averages. I am therefore more likely to sell in the very short term than buy: even if a dip is probably established. The price can trade sideways for a good long time. Be careful not to buy like crazy, choose the right entries.
I hope you enjoyed the fifth installment of Ethereum 360. Never invest more than you can afford to lose and do plenty of your own research! Happy trading and see you next Friday for more analysis on CoinTribune! Have a great week!
Hi, Привет & Salut! I’m interested in two things: crypto and languages. So I’m really excited to be part of the multinational CoinTribune team, where I can share my crypto knowledge with people from around the world, one article at a time.