If you have seen my previous analysis on ETH, then you know that I have been bullish on it, I was looking at a price objective of 220 for the falling wedge. It appears like it might be hit, however, we will have to see how that plays out. It has made a move to 195 and it has seen greater growth than bitcoin (which aligns with one of my macro theories), so I wanted to take a look at ETH vs. BTC.
The Chart:
Overall, charts against BTC can be hard to read because they have these points in which they stagnate and then suddenly move in either direction. But this one looks like it has found at least a temporary bottom. The light blue rectangle denotes a bullish hammer/dragonfly doji with okay volume on it. The most important aspect is that this looks like a morning star candlestick pattern with a bullish engulfing candle to the right of it. Of course volume is not the best on that candlestick either, but its possible that volume wont pick up until there is some more life in the alts. Also, the red rectangles are areas of horizontal resistance, so it is entirely possible that ETH will be rejected at any of these price points or consolidate between or within them.
Possible Price Action:
As long as bitcoin is consolidating at the moment, it is my opinion that we will begin to see some alts pop off. It is entirely possible that ETH gets rejected at this point, however, I do believe that this horizontal resistance level will be broken, in addition, I believe that there will be strong pop from this region and then a consolidation for some more upward movements. If ETH gets rejected at this level, either the bottom wick of the dragonfly doji will hold as support or it will break. Finally, I want to add that there may be consolidation at this price point.
Current ETHUSD analysis:
Note: The arrows are only representations of possible price action and they do not denote time.
The Chart:
Overall, charts against BTC can be hard to read because they have these points in which they stagnate and then suddenly move in either direction. But this one looks like it has found at least a temporary bottom. The light blue rectangle denotes a bullish hammer/dragonfly doji with okay volume on it. The most important aspect is that this looks like a morning star candlestick pattern with a bullish engulfing candle to the right of it. Of course volume is not the best on that candlestick either, but its possible that volume wont pick up until there is some more life in the alts. Also, the red rectangles are areas of horizontal resistance, so it is entirely possible that ETH will be rejected at any of these price points or consolidate between or within them.
Possible Price Action:
As long as bitcoin is consolidating at the moment, it is my opinion that we will begin to see some alts pop off. It is entirely possible that ETH gets rejected at this point, however, I do believe that this horizontal resistance level will be broken, in addition, I believe that there will be strong pop from this region and then a consolidation for some more upward movements. If ETH gets rejected at this level, either the bottom wick of the dragonfly doji will hold as support or it will break. Finally, I want to add that there may be consolidation at this price point.
Current ETHUSD analysis:
Note: The arrows are only representations of possible price action and they do not denote time.
Comment:
I forgot to mention, that I take it very lightly, but there is a bullish divergence on the Moving Average Convergence Divergence (MACD).