Cutting straight to the chase, ETHUSD needs to get back above the $380 level of support/resistance before the long-term technicals turn bullish.
Not only is this weeks candle under the great pressure of last weeks down candle, but the MACD histogram is pointing lower with a possible bearish MACD line cross-over coming soon to.
Short term traders will look for scalping opportunities but longer term investors will take a cautious approach to buying this dip until price consolidates.
The most obvious level for support at this point (shown by the blue horizontal) is down at $290.
Observe the boxes drawn around 2 volume spikes. Last week's candle had the highest selling volume for ETH in history, even more than the 'corona crash' back in March. And while price did drop, it didn't drop nearly as much as the corona crash. This suggests strong hands in the ETH market with a lot of 'buying the dip'.
If Financial Institutions were waiting for a sign of bullish market sentiment before they start buying, last weeks crash (ironically) may have been it.
It's possible that ETHUSD ranges between $290 and $380, for 'a while' until finding its foot back above the $380 level ready for epic continuation to the upside.
Based on the technicals, Team Sparkster is therefore medium-term neutral on ETH at this moment in time. Long-term bullish.
Check out the fully backtested strategies on the alpha version of our algo-assisted signals tool (link below). Optimise your own trading strategies with our tool to validate your hypothesis with historical data. New features are in development based on user feedback.
Note: SparksterSignals (including our technical analysis and our algorithmic backtested signals) are not provided as financial advice.
Not only is this weeks candle under the great pressure of last weeks down candle, but the MACD histogram is pointing lower with a possible bearish MACD line cross-over coming soon to.
Short term traders will look for scalping opportunities but longer term investors will take a cautious approach to buying this dip until price consolidates.
The most obvious level for support at this point (shown by the blue horizontal) is down at $290.
Observe the boxes drawn around 2 volume spikes. Last week's candle had the highest selling volume for ETH in history, even more than the 'corona crash' back in March. And while price did drop, it didn't drop nearly as much as the corona crash. This suggests strong hands in the ETH market with a lot of 'buying the dip'.
If Financial Institutions were waiting for a sign of bullish market sentiment before they start buying, last weeks crash (ironically) may have been it.
It's possible that ETHUSD ranges between $290 and $380, for 'a while' until finding its foot back above the $380 level ready for epic continuation to the upside.
Based on the technicals, Team Sparkster is therefore medium-term neutral on ETH at this moment in time. Long-term bullish.
Check out the fully backtested strategies on the alpha version of our algo-assisted signals tool (link below). Optimise your own trading strategies with our tool to validate your hypothesis with historical data. New features are in development based on user feedback.
Note: SparksterSignals (including our technical analysis and our algorithmic backtested signals) are not provided as financial advice.
