Ethereum is trading in a range, caught between the bulls and bears fighting an endless battle within it. This week, my analysis looks back at the previous increases and which will, I hope, help guide your investments. Let’s take a look at ETH in this installment of Ethereum (ETH) technical analysis!
Let’s start with an overview of Ethereum (ETH). It is doing very well, reflecting the crypto market in general. The price appears to have bottomed out at $1,800 and since then has been rising in a straight line.
The straight line increase, paired with an uptick in volume signals a powerful buying force, but this also interests the whales, who want to make sure some of the leveraged traders get rekt. A consolidation – or even a retracement – is therefore to be expected and would reflect a healthier rise.
The price has finally consolidated over the last few weeks. People are starting to take profit in the 61.6% Fibonacci zone. Sellers will need to show strength in the OB (order block – orange) area and even before it, looking to front-run the market.
If the highs are broken, everything will be bullish again in the medium term, giving certainty that it is not a dead cat bounce, even though it looks less and less like it.
I am still waiting for a retracement after this sharp rise to lower levels to allow the whales to liquidate a good number of the high lev pro traders and buy in at lower prices.
Now, let’s take a look at the four-hourly graph. We can see this range nice and clearly. There is an upper bound of $3,300 and a lower bound of $2,900. ETH is recovering momentum within this zone, ready for another step up again.
The logical trend is bullish, but be careful not to be too bullish: the whale story I told you about above is real, and open interest (leveraged long positions) only continues to increase.
Nonetheless, ETH took liquidity below the latest low to start to make a run for the highs again. The price marks a divergence which is, in my opinion, quite attractive in this range. Waiting for the breakout to take a trade in this direction is an opportunity that could be interesting with good risk management.
Finally, the one-hour timeframe indicates the different areas to defend when you are a buyer. First we had a resistance/support flip. As long as the price is above the trend, the market is therefore strongly bullish. The second zone is the OB, which marks the last low point. As long as it holds, the trend holds.
We will be watching the price action in the days to come to see how the price will react to this high volatility as of recent weeks. However, I do not think that the trend is being called into question for the moment, we are just witnessing profit taking from investors who wish to realise some of their profits.
That’s it for this installment of Ethereum (ETH) 360! Remember: never invest more than you can afford to lose, and most importantly, Do Your Own Research (DYOR)! Happy trading and see you on Wednesday for a new article!
Passionné d’analyse technique et de technologie, je suis assidûment les cryptomonnaies depuis 2017. Au-delà du trading et de l’investissement, j’essaye de démocratiser, à ma manière, l’écosystème qui changera sans doute nos habitudes de demain !
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
|BITCOIN (BTCUSD) ₿||$62,726.84||2.98%|
|ETHEREUM (ETHUSD) Ξ||$4,197.18||2.82%|
|IMM. US (REIT)||$2,738.86||0.26%|
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