ETH/USDT: Hidden Bullish Divergence Analysis 1H (Aug. 08)

X Force Global Analysis:


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In this post ,we analyze Ethereum's 4 hour chart, assessing its short term bullish probabilities.

Analysis

- To begin with, Ethereum (ETH) has been consolidating within a bullish pennant pattern
- Prices have been creating lower highs and higher lows
- While bears have attempted to break the structure, bulls have managed to secure significant trend line support
- There is a hidden bullish divergence in play, with higher lows on the price, and lower lows on the indicator
- The Relative Strength Index (RSI) is at neutral zones, showing potentiality for a breakout
- The Moving Average Convergence Divergence (MACD) has shown increasing bearish histograms, leading to a potential golden cross
- The Stochastic Oscillator has recently formed a golden cross at neutral levels as well
- The Simple Moving Averages (SMAs) are all aligned in the order of: 20, 50, and 100 SMA
- Prices have tested the lower bollinger band support
- Prices have managed to bounce on the Ichimoku cloud support
- For Ethereum to retest its new lower high, it must first break and close above the 0.618 Fibonacci resistance, providing confirmation

What We Believe

We believe that Ethereum's short term technicals demonstrate room for a small breakout, that could lead to a formation of a new lower high. For a continuation of the rally, ETH would have to break and close above the bullish pennant structure.

Let us know what you think in the comment section below


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