ETH continued its plunge hitting lows of $167 blowing past the support zone as stops were hit triggering a quick move lower and formed a tweezer bottom. With any support level, you want to see some type of reaction when it enters/breaches the level and we got exactly that so far.
We can see that buy volume did enter the market and practically matched the volume on that big move down, which does show that there were buyers present and will be important to see if this does hold if it is tested again for a continued move higher in future. However, we can see that the RSI and MACD are starting to hit their upper ranges, signaling that a pullback could be in the cards. As well, the price is approaching our resistance level at around $215, which was the breakdown point from the bearflag and could prove to be a stubborn supply zone to break on the first try.
If we do break above this zone, we can expect to see lots of shorts close their trades, which could propel ETH to $250 fairly quickly as there is a vacuum zone above $235. However, we must be wary as this may just be a relief rally before shorts take back control and continue to move price lower to the next support zone around $100-$120.
As always, we must monitor BTC as everything is closely follow its price action.
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We can see that buy volume did enter the market and practically matched the volume on that big move down, which does show that there were buyers present and will be important to see if this does hold if it is tested again for a continued move higher in future. However, we can see that the RSI and MACD are starting to hit their upper ranges, signaling that a pullback could be in the cards. As well, the price is approaching our resistance level at around $215, which was the breakdown point from the bearflag and could prove to be a stubborn supply zone to break on the first try.
If we do break above this zone, we can expect to see lots of shorts close their trades, which could propel ETH to $250 fairly quickly as there is a vacuum zone above $235. However, we must be wary as this may just be a relief rally before shorts take back control and continue to move price lower to the next support zone around $100-$120.
As always, we must monitor BTC as everything is closely follow its price action.
Please hit the 'like' button and give us a follow!
Comment below on what you guys think is coming for ETH and the rest of the market!
Thank you!
Comment:
Ethereum continued its move higher since posting but ran into supply above and has since retraced and could be heading back to test the $190-$200 area before trying to make another leg higher. If we do not hold there, the support zone must hold or else ether could be making another run at new lows.