Ethereum: USD/ETH (ETH=) notches higher highs
Just hours ago as of the time of this article’s writing, Ethereum traded as high as $200, which meant that it had gained more than 120% from the lows of March. This has been a stunning rally that has convinced many investors to flip bullish on the leading altcoin.
However, analysts are starting to see signs of an imminent reversal for ETH, citing a junction of bearish technical analysis factors suggestive of downside.
Shayne Heffernan Trade Idea
“Can ETH rally hard enough to bring BTC back above the yearly open? Or will BTC’s sluggishness and inability to close above the yearly open bring ETH back downwards? This will set my ‘bias’ for the coming days/week most likely.” Shayne Heffernan PhD in Economics
Why This Matters
It’s important that investors keep an eye on Bitcoin, though, as a rally in the leading cryptocurrency could negate any serious downturn in the altcoin market.
Unfortunately for bulls, BTC is showing signs it may reverse here.
The coming days are likely to hold in store further volatility for Ethereum, as the ballooning market participation rates are bound to magnify the intensity of movements in both directions.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 233.91.
The projected lower bound is: 158.66.
The projected closing price is: 196.28.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 85.3149. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 66.04. 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 buy 39 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 116.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 36 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed down -0.340 at 196.550. Volume was 59% below average (consolidating) and Bollinger Bands were 39% narrower than normal.
Open High Low Close Volume 195.190 199.600 193.500 196.550 158,925
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 185.62 154.06 172.23 Volatility: 65 160 103 Volume: 311,031 459,996 209,009
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.
FOREX ETH= is currently 14.1% above its 200-period moving average and is in an upward 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 bullish on ETH= and have had this outlook for the last 23 periods.
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