Ethereum was certainly the powerhouse of the rally that happened on September 12th to 13th PST. It dominated the market, literally steamrolling through the bears, but I am concerned that it may get steamrolled once again. If you haven't read my other analyses, I had mentioned that bitcoin dominance is rising so it is possible that these charts are not the best representation of what might happen. Nonetheless, there is a bullish undertone that it occurring in the market, which makes me think that bitcoin might be secretly bullish.
The analysis:
1.) Ethereum has taken a huge blow, and this may just be a strong dead cat bounce. However, there is a bullish divergence that occurred on the daily RSI, it is noted with the green trendline in the oscillator, it did also encounter resistance as well though, and I market it with the red trend line in the RSI. So essentially, the RSI is forming a symmetrical triangle. Currently, the only possible reversal pattern that I believe Ethereum is preforming is a "V" style bottom, in which there is a high volume drop and there is a large pick up in volume.
2.) There is a small bull flag that is forming on the hourly time frame and this and I will be posting an image of this on the bottom with a price objective somewhere around the 250-260 area. However, I do not know if this will hold because, the last symmetrical triangle that Ethereum broke through turned out to be a false breakout and then it made a strong move to the downside, roughly 100.
3.) So far, there is a lot of bearish tones still in the market, and with bitcoin dominating the scene and Ethereum's weekly looking like it will make further moves down, I do believe that it will be difficult for Ethereum to break the orange trendline, the third trendline of the fan principle and reverse this trend. Even if it does manage to break the third trendline it is still possible it will continue the bear market, as I have seen this happen before with litecoin.
The analysis:
1.) Ethereum has taken a huge blow, and this may just be a strong dead cat bounce. However, there is a bullish divergence that occurred on the daily RSI, it is noted with the green trendline in the oscillator, it did also encounter resistance as well though, and I market it with the red trend line in the RSI. So essentially, the RSI is forming a symmetrical triangle. Currently, the only possible reversal pattern that I believe Ethereum is preforming is a "V" style bottom, in which there is a high volume drop and there is a large pick up in volume.
2.) There is a small bull flag that is forming on the hourly time frame and this and I will be posting an image of this on the bottom with a price objective somewhere around the 250-260 area. However, I do not know if this will hold because, the last symmetrical triangle that Ethereum broke through turned out to be a false breakout and then it made a strong move to the downside, roughly 100.
3.) So far, there is a lot of bearish tones still in the market, and with bitcoin dominating the scene and Ethereum's weekly looking like it will make further moves down, I do believe that it will be difficult for Ethereum to break the orange trendline, the third trendline of the fan principle and reverse this trend. Even if it does manage to break the third trendline it is still possible it will continue the bear market, as I have seen this happen before with litecoin.
Comment:
So here is the image of Ethereum on the hourly, and as you can seen there is a divergence occurring, and a possible double top. However, it also looks like a bullish pennant and the price objective of that pennant would be somewhere around 260.
