/latest/2020/02/ethereum-indicator-about-to-cross-bullish-after-1-5-years-bearish-price-analysis/
Ethereum Indicator About to Cross Bullish, After 1.5 Years Bearish — Price Analysis
Ethereum (ETH) put in a huge leg up last week, leading an altcoin market that is growing increasingly frothy. In this it has followed Bitcoin, which is also doing excellently. We should see some cooling this week for both cryptos, but it is well within bullish limits.
We begin at the 3-day ETH/Bitcoin chart, and see that the price surge was halted exactly at this capitulation line (predicted here), which now forms the local top of the market. Volume built up last week very well, with mostly buying to add to the surging price.
It is reasonable to expect some consolidation to come in around here, somewhere between the local top and the most previous inflection line (black line). This would be completely acceptable within a larger bullish narrative.
Looking at the 3-day ETH/Dollar chart, we see a very similar – and similarly bullish – scenario. A selloff and profit-taking has come exactly where we might expect it to, at about $220 (indeed, this was also predicted). There is plenty of cushion starting at $200, where the first support should come in; and this is also exactly where the .382 Fibonacci retracement level lies, which is prime support territory.
On the weekly ETH/Bitcoin chart, which closed yesterday, we note something very special: the 8 EMA is looking like it wants to cross over the 21 EMA. The last time the 8 was over the 21 on this chart was July of 2018 – obviously, if it breaks up on force this week or in the coming weeks, it will be a big deal.
We also note the RSI, which has traversed far above the historic inflection zone on the ETH/Bitcoin chart. The histogram also put in a sharp bullish acceleration last week.
Finally, turning to the daily ETH/Dollar chart, we see nothing but bullish signs: confluent higher highs on the RSI and histogram; and volume keeping pace with price rise. But the EMAs need time to catch up here, and the RSI was quite overbought, so we should expect selling at least in the short term, if not in the MTF chart as well.
Things are looking exceptional for Ethereum, as they are with Bitcoin. And like with Bitcoin, Ethereum needs some time for a healthy consolidation.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
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