Ethereum 360 #18: 26th July 2021
Hello everyone, welcome to a new installment of Ethereum 360! Following a strong Asian trading session, we are seeing plenty of green! Is this a simple rebound or trend reversal? Let’s dissect ETH in this market review!
An increase of more than 6%
Both Ethereum (ETH) and the crypto market more generally picked up yesterday night during the Asian session, gaining nearly 10%. Be careful not to be too euphoric!
Let’s start on the daily. We notice that the support on the $1,600 level held and, better than that, made the price rebound. A bullish engulfing candle on a support is something very powerful that shows a buyer presence.
The pressure resulted in an increase in volumes (from a low base) and a break of the falling trend line.
So, time to buy?
Volumes are not as high as in the previous rise. Subsequently, the price seems to have stopped at the previous high. If it did go on to break, it would call into question the current market structure, which is still bearish. Once this top is broken, we could consider buying for the longer term. On the other hand, if the price is rejected, then the downtrend will be confirmed, and buying wouldn’t make much sense.
On the four-hourly, this increase is clearly visible, but watch out for FOMO (Fear Of Missing Out). This is partly due to a short squeeze, i.e. the shorts were liquidated and traders were forced to buy back their positions, causing a strong movement against the downwards trend.
Now, the price is on the old high point; we need to remain vigilant to know if the price will continue on its route or trace back to the order block (OB), which may be filled sooner or later. You can also use the Fibonacci retracement tool to find interesting long areas. Volumes are increasing slightly on this timeframe – a good thing for buyers.
Finally, on my smallest time frame, the hourly, we see the uptrend better. There are higher and higher lows and higher and higher highs as well. The RSI is posting divergence, which resulted in a slight bottom before continuing to rise.
Remember, to get back into assets like Ethereum, the best way is to dollar cost average (DCA), which involves buying every week, two weeks or month, smoothing out your average entry price!
That’s it for this installment of Ethereum 360! Remember, never invest more than you can afford to lose and above all DYOR. Happy trading and see you next Monday for a new article!
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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.