Ethereum: USD/ETH (ETH=) still in the buy zone in preparation for the run-up to $300

Ethereum: USD/ETH (ETH=) still in the buy zone in preparation for the run-up to $300

Ethereum: USD/ETH (ETH=) still in the buy zone in preparation for the run-up to $300

Ethereum is facing growing selling activity since the recent breakout failed to sustain gains above $230. The correction that followed explored levels slightly under $220. However, the congestion of buyers in the zone has seen Ether renew the uptrend towards $225.

At the time of writing, ETH/USD is teetering at $224 amid a developing bullish momentum. The bulls require enough buying power and volume to clear the resistance towards $130. Unfortunately, technical levels are still unresponsive especially with the Relative Strength Index (RSI) stuck under the overbought region.

On the brighter side, if the growth continues, then more and more buyers will be convinced to join the market. For now, the bulls must defend the support at $220 to ensure that any dips towards $200 are averted at all costs.

Another key bearish scenario is the formation of a double-top pattern. Unless the price advances above the next resistance at $230 and $240, Ethereum will remain in grave danger and at risk of diving back to $200. On the other hand, the pattern will function as support if ETH were to reverse from levels close to $300.

The fact that Ethereum is trading above the 200-day SMA, means that the bulls are largely in the driver’s seat. Therefore, investors should not panic due to the ups and downs in price movements, besides there is no bull market without pullbacks.

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 187.58.

The projected upper bound is: 266.17.

The projected lower bound is: 231.82.

The projected closing price is: 248.99.

Candlesticks

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 34 white candles and 16 black candles for a net of 18 white candles.

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 86.4862. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 84.42. 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 8 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 133.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 13 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed up 9.210 at 246.620. Volume was 8% above average (neutral) and Bollinger Bands were 159% wider than normal.

Open     High      Low     Close     Volume___
236.850 248.600 235.780 246.620 94,825
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 217.12 165.76 174.62
Volatility: 65 63 70
Volume: 204,699 109,101 74,248

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 41.2% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 37 periods. Our momentum oscillator is currently indicating that ETH= is currently in an overbought condition.

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