History always repeats on markets, that’s way we can predict things or at least anticipate them. Technical analysis is basically the study of past price and activity history from charts in order to predict future price movements. Let’s have a look at ETH price movement – (it was similar for some other coins, I will post later). ETHUSD had retracement back on 17 JAN low, and for now bounced back up. That was important support line, which can turn the trend around. Double bottoms are strong reversal points. And if the price holds above $790 on 1H chart we can anticipate higher prices and potentially target $1225. Looking at MACD, its strongly in negative, pointing to oversold position but moving back up, RSI is also picking up and most importantly, volume is rising. $919 is the nest resistance, after that clear path towards $1225. If we brake below $790, next strong support lies on $660 and continuation of bearish movement. I will follow the trade from here, step by step. After such dip, investors have to change sentiment – which is the difficult part, but when they do, we will see nice rebound back up.
I would watch bitcoin as it still has large effect on how ethereum moves. Btc has double bottoms month ago, but keep dropping lower, if btc moves down, it probably moves down as well