Ethereum: USD/ETH (ETH=) On The Charge

Ethereum: USD/ETH (ETH=) On The Charge

According to the Tradingview.com charts, Ethereum hit a low of just below $245 yesterday which was down around 15% from its 2020 peak.

Today, prices are back in bullish territory with a return to resistance at $270 over the past few hours trading. This equates to a solid 10% gain over the past 24 hours.

The pullback was not enough to reach the 50 day moving average indicating that the uptrend is still very strong. ETH is currently at the support/resistance level it hit four times between May and July 2019 and $300 is the next target above here.

A break to the low side would see the world’s second most popular digital asset fall back to support around the $240 area.

ETH Fundamentals

The conclusion of the ETHDenver event has been bullish for the asset with plenty of developments on the dApp and protocol side. Additionally co-founder Vitalik Buterin remained confident that the initial phases of Serenity will see the light sometime this year.

Every week brings innovative client optimizations, larger testnets, and an ever growing community of informed stakers all eager for Beacon Chain to get underway.

There has been a fair bit of DeFi FUD recently, most of which has come from Charlie Lee and bitcoin maxis. This can be seen as a testament to how rapidly the ecosystem has grown since a year ago nobody really paid much attention to it.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 209.16.

The projected upper bound is: 310.08.

The projected lower bound is: 257.52.

The projected closing price is: 283.80.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.7411. This is not an overbought or oversold reading. The last signal was a sell 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 72.16. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 99. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 20 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -0.750 at 280.750. Volume was 1% above average (neutral) and Bollinger Bands were 186% wider than normal.

Open     High      Low     Close     Volume___
281.500 285.380 277.830 280.750 118,438
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 261.74 185.96 176.68
Volatility: 115 78 74
Volume: 366,975 159,448 87,053

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX ETH= is currently 58.9% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into ETH= (mildly bullish). Our trend forecasting oscillators are currently bullish on ETH= and have had this outlook for the last 44 periods. Our momentum oscillator is currently indicating that ETH= is currently in an overbought condition.

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