Reason 1 An Ethereum Bull Run is incoming: Bullish Divergence
One of the most fundamental ways to spot reversals is MACD/RSI and price action divergence, and the higher the timeframe we see the divergence the more severe the reversal will be. Also, the higher the volume of the exchange the better reading we get and so the best way to see this divergence on Tradingview is on ETHUSDT on Binnnace. But, if you follow ETHUSD but not ETHUSDT you will miss the most accurate post for Ethereum price action.
If you eagle eye the cart you will see times where you have some divergence on just the RSI or just the MACD but you see the greatest reversals when the divergence is on both. You can see the bearish divergence for both indicators in blue from January 7th to January 13.
The first time we see dual indicator bullish divergence (in red) is between March 19th through the 30th. We then have some sideways action for about a week and then take off. We went from 365 to 840, an increase of 130% calculated by (t2-t1)/t2. We can now see the bullish divergence settling in for both indicators from May 22 to May 27th.
So, what is the prediction that is totally not financial advice because I am unqualified to give financial advice? INCOMING MEGA BULLRUN YEEAAAAAAAAH BOY!!!!!!!!!!!!! Using a fundamental set of TA tools we have established a higher low. We will still need to unwind some sideways action and if you are playing with leverage and don’t give yourself enough wiggle room you can still get wicked out of your position but the foundation for the next bull run is here. What is the target to get out? I don’t know, but I will be looking for bearish divergence to verify the top.
If you eagle eye the cart you will see times where you have some divergence on just the RSI or just the MACD but you see the greatest reversals when the divergence is on both. You can see the bearish divergence for both indicators in blue from January 7th to January 13.
The first time we see dual indicator bullish divergence (in red) is between March 19th through the 30th. We then have some sideways action for about a week and then take off. We went from 365 to 840, an increase of 130% calculated by (t2-t1)/t2. We can now see the bullish divergence settling in for both indicators from May 22 to May 27th.
So, what is the prediction that is totally not financial advice because I am unqualified to give financial advice? INCOMING MEGA BULLRUN YEEAAAAAAAAH BOY!!!!!!!!!!!!! Using a fundamental set of TA tools we have established a higher low. We will still need to unwind some sideways action and if you are playing with leverage and don’t give yourself enough wiggle room you can still get wicked out of your position but the foundation for the next bull run is here. What is the target to get out? I don’t know, but I will be looking for bearish divergence to verify the top.
Comment:
This looks extraordinarily positive for the bulls. The H-MACD is surging upwards and will probably do so for 5-10 periods and we can be sure this will lead to a MACD bullish cross above zero. At this point I am 95% positive we have completed the foundation for a higher low and the bull run is confirmed.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion