Ethereum: USD/ETH (ETH=) Primed for Parabolic Rally After Pullback Following Disbelief Phase

Ethereum: USD/ETH (ETH=) Primed for Parabolic Rally After Pullback Following Disbelief Phase

At the start of the year, the entire crypto market appeared to be rebounding out of the crypto winter it had long been trapped in and started showing signs of a bullish uptrend forming once again. But starting in April, Bitcoin and altcoins like Ethereum diverged, and the alternative crypto assets began to plummet even further, erasing what little gains had amounted during the year thus far.

Since then, Bitcoin sucked the life out of the altcoin market, including Ethereum, and only now that Bitcoin is once again falling too are altcoins beginning to show a glimmer of hope that their ongoing downtrend may finally be coming to an abrupt end.

According to one popular crypto industry analyst, that is true for Ethereum, which may have bottomed and is ready to break out of a consolidation pattern it has been trading in. The crypto analyst also expects Ethereum to go on to experience “parabolic price growth,” on the ETH/USD trading pair.

ETH Prices Could Revisit All-Time High in Less Than One Year

After fully bottoming in December 2018 along with the rest of the market, the crypto analyst says that Ethereum has just experienced its first pullback after the disbelief stage, and following that phase in normal market cycles typically comes a revival of hope that ultimately becomes a full-blown bull market.

If Ethereum has indeed bottomed and has just confirmed former resistance as support during a pullback ahead of a rally, the analyst believes that not only will the smart contract-focused crypto-asset rise in the coming days ahead, but could revisit its all-time high of over $1,400 per ETH within less than one year’s time.

Such performance in Ethereum markets would result in an over 650% return on investment from current prices of $180 per ETH to the asset’s previous all-time high of $1,400 it set at the start of 2018 – before the bear market took hold and eliminated as much as 99% of the value from most altcoins – including Ethereum.

Ethereum, like Bitcoin, often moves the entire crypto market and an extended rally for Ethereum may also mean an extended rally in the overall crypto market may be around the corner.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 203.66.

The projected lower bound is: 153.50.

The projected closing price is: 178.58.

Candlesticks

A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black 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 32.1050. This is not an overbought or oversold reading. The last signal was a sell 5 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 47.29. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 26 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 -24. This is not a topping or bottoming area. The last signal was a sell 4 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 9 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed up 0.370 at 178.740. Volume was 73% below average (consolidating) and Bollinger Bands were 58% narrower than normal.

Open     High      Low     Close     Volume___
178.150 181.710 175.440 178.740 18,384
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 183.15 182.36 211.39
Volatility: 75 87 89
Volume: 58,218 72,974 66,679

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 15.4% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of ETH= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on ETH= and have had this outlook for the last 19 periods.

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