Cryptos have come to life recently as Bitcoin’s limited supply post-halving combines with a wave of blockchain adoption:
SQ
,
PYPL
and now
JPM
.
Ethereum’s been quieter since the summer, following a hard rally in July and August. But now it may be showing its own signs of life.
The main thing standing out on the chart today is an apparent bullish flag that’s formed in the last week. This is interesting if we use
BTCUSD
as a guide.
Both cryptos had bullish outside days on October 12. This caused a sideways channel for BTCUSD, which it escaped on October 21.
ETHUSD traded similarly, breaking out the same day as BTCUSD. It then pulled back and successfully tested that candle as potential support yesterday. Notice how ETHUSD probed under the October 12 high, but clawed back above it 19 hours later.
Second, ETHUSD has been in a very tight range (unlike BTCUSD). This is evident on the weekly chart, which had inside and outside candles at the start of October. The current week’s price action is also contained so far within last week’s. Bollinger Band Width highlights the tight range on this daily chart.
Finally, the trend and momentum are both accelerating. Our custom indicator MA Speed shows the 50-day simple moving average is now rising. (This also marked the start of rallies in early 2019, plus January and May of this year.) MACD has remained steadily positive as well.
All these patterns may suggest ETHUSD is poised to accelerate higher. Traders may lean toward buying if it holds this current breakout and confirms the bullish flag.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
SQ
,
PYPL
and now
JPM
. Ethereum’s been quieter since the summer, following a hard rally in July and August. But now it may be showing its own signs of life.
The main thing standing out on the chart today is an apparent bullish flag that’s formed in the last week. This is interesting if we use
BTCUSD
as a guide. Both cryptos had bullish outside days on October 12. This caused a sideways channel for BTCUSD, which it escaped on October 21.
ETHUSD traded similarly, breaking out the same day as BTCUSD. It then pulled back and successfully tested that candle as potential support yesterday. Notice how ETHUSD probed under the October 12 high, but clawed back above it 19 hours later.
Second, ETHUSD has been in a very tight range (unlike BTCUSD). This is evident on the weekly chart, which had inside and outside candles at the start of October. The current week’s price action is also contained so far within last week’s. Bollinger Band Width highlights the tight range on this daily chart.
Finally, the trend and momentum are both accelerating. Our custom indicator MA Speed shows the 50-day simple moving average is now rising. (This also marked the start of rallies in early 2019, plus January and May of this year.) MACD has remained steadily positive as well.
All these patterns may suggest ETHUSD is poised to accelerate higher. Traders may lean toward buying if it holds this current breakout and confirms the bullish flag.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
