4 Technical Basis why ETH/USD will climb to $400 in April 2020!
The bulls defended aggressively the $223 support for the last 8 daily candles since February 26, 2020.
RSI value close to 50 indicates the BULLS & BEARS are waiting for the next action.
However, it is highly likely that the BULLS will take control next.
4 technical basis why the pair of ETH and USD can continue its strong uptrend starting in early January to reach $400 are:
1. The pair successfully broke 2 very important resistance: MA(200) level in January 29, 2) long-term downtrend line extended back from January 2018 as depicted.
Each break-out is followed by trading volume greater than the VMA(60).
2. The $224 level is a very strong support level and has been confirmed more than 2 times since June 2019.
3. The $224 level is consistent with the 62% golden ratio of Fibonacci retracement following the solid uptrend rally from December, 18 to February 14.
4. The Higher High and Higher Low patterns are constructed reasonably well as indicated by the mid-term trend line (see HH1, HL1, HH2, HL2).
Based on this, the pair is considered still in bullish condition.
The bulls need to secure the pair above its EMA(28) level to regain the uptrend strong momentum.
If successful, the 2nd long rally to $400 as the 1st target of Fibonacci Extension is highly possible.
Following a similar timeframe with the first rally, such level can be reached in the next 50 daily candles (End of April).
Trade Setup:
Limited and accumulation buy can be done now. Set protection loss if it breaks the 50% Fibo level.
A long position can be opened once the position above the latest higher high (HH2) at $290 level is secured for at least 2 daily candles.
Conversely, if the pair breaks the mid-term trendline down, the bears may take over the rally and will test the 50% and 38.2% Fibonacci level.
RSI value close to 50 indicates the BULLS & BEARS are waiting for the next action.
However, it is highly likely that the BULLS will take control next.
4 technical basis why the pair of ETH and USD can continue its strong uptrend starting in early January to reach $400 are:
1. The pair successfully broke 2 very important resistance: MA(200) level in January 29, 2) long-term downtrend line extended back from January 2018 as depicted.
Each break-out is followed by trading volume greater than the VMA(60).
2. The $224 level is a very strong support level and has been confirmed more than 2 times since June 2019.
3. The $224 level is consistent with the 62% golden ratio of Fibonacci retracement following the solid uptrend rally from December, 18 to February 14.
4. The Higher High and Higher Low patterns are constructed reasonably well as indicated by the mid-term trend line (see HH1, HL1, HH2, HL2).
Based on this, the pair is considered still in bullish condition.
The bulls need to secure the pair above its EMA(28) level to regain the uptrend strong momentum.
If successful, the 2nd long rally to $400 as the 1st target of Fibonacci Extension is highly possible.
Following a similar timeframe with the first rally, such level can be reached in the next 50 daily candles (End of April).
Trade Setup:
Limited and accumulation buy can be done now. Set protection loss if it breaks the 50% Fibo level.
A long position can be opened once the position above the latest higher high (HH2) at $290 level is secured for at least 2 daily candles.
Conversely, if the pair breaks the mid-term trendline down, the bears may take over the rally and will test the 50% and 38.2% Fibonacci level.