Ethereum: USD/ETH (ETH=) Subject To A Bullish Breakout
The Ethereum bulls have been forced to give up momentum over the last trading week, following a straight run higher of some four weeks. ETH/USD rallied over 47% from $122 up to the recent highs of $180. The price was able to hit the highest seen since 18 November. It was the most consecutive run higher since April-May 2019.
ETH/USD was able to produce a bottom out at the back-end of 2019, down the lowest levels since February 2019. Since hitting these lows, a foundation has been laid for a more significant recovery. It has been proven over the past few weeks. It comes following the heavy beating incurred in the second half of 2019, falling from heights of $363.
Bulls To Break Critical Bearish Structure
The price, as detailed above, was within the firm control of the bears from June – December 2019. The market structure was very much bearish, with any rallies being sold and proving at the time to be vulnerable and short-lived. Following the peak in June, pullbacks were observed in; August, September, and November, all of which were sold.
Market bulls will need to break down the last extreme high, which was seen up at $225 on 16 September. A breach of this previous significant pullback would be a confirmation that this structure has come to an end. Given the promising signs with the current bull run, it does look encouraging for the move out of the downward trend.
Daily Chart View
Price action via the daily chart view has been cooling since 19 January; however, during this period a potential bullish formation has been constructed. A bullish flag pattern can be observed, which does appear to be subject to a breakout higher. The pole of the structure being the pump from 14-18 January.
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 157.08.
The projected upper bound is: 181.93.
The projected lower bound is: 151.99.
The projected closing price is: 166.96.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 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 62.4257. This is not an overbought or oversold reading. 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 61.47. 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 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 39. This is not a topping or bottoming area. The last signal was a sell 8 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 sell 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed down -0.100 at 166.650. Volume was 49% below average (neutral) and Bollinger Bands were 37% wider than normal.
Open High Low Close Volume___
165.910 169.780 165.150 166.650 34,674
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 166.51 143.82 176.40
Volatility: 52 66 73
Volume: 91,896 77,091 67,478
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.
Summaryethereum, usd/eth, trading, investing, shayne heffernan, ethereum news, eth news, ethereum techncial analysis, ethereum forecastSummary
FOREX ETH= is currently 5.5% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 21 periods.
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