ETH is looking strong again. It retraced from its highs down to the 0.382 Fib level (around $4K) where it found support. It then rallied and came back to retest this level. After a successful retest price has moved confidently up to the short term down trend line where it is currently sitting as I write. There is a chance we could see another pullback from here, however, I think it's more likely that we see a small reaction before price moves further up. Her is why:
1. Fib 0.382 has already been retested.
2. Price has already moved above a previous zone of demand which can now provide support in the event of new downward pressure (yellow box at $4200-4300). This would be the perfect area to bounce off for further upside.
3. Both RSI and OBV are both trending up showing increasing strength.
4. Volume shows higher levels on up moves than it does when sellers control the move. Green volume bars are larger than red bars.
Overall the market is looking more bullish. ALTs have been randomly rallying and (although early) would appear BTC may have found the bottom as well. In this environment, I have taken new positions in ETH.
1. Fib 0.382 has already been retested.
2. Price has already moved above a previous zone of demand which can now provide support in the event of new downward pressure (yellow box at $4200-4300). This would be the perfect area to bounce off for further upside.
3. Both RSI and OBV are both trending up showing increasing strength.
4. Volume shows higher levels on up moves than it does when sellers control the move. Green volume bars are larger than red bars.
Overall the market is looking more bullish. ALTs have been randomly rallying and (although early) would appear BTC may have found the bottom as well. In this environment, I have taken new positions in ETH.
