Technical Analysis; ETH May 01
This time looking at Ethereum. Last time I was around I gave out buy signal recommendations at $370 and $500 respectively, and we are now at $650.
So far Ethereum once at $700, has had a pretty nice run up since it was way oversold.
Ethereum has tried to rally most of the weekend but got pummeled on Monday. It's market has also been trading in a buoyant manner just short of the $700 resistance level.
I still think the market has a lot of opportunities to run even higher and its attracting some value hunting, perhaps towards $904 to $1,000!!!!! ಠ_ಠ
The $800-$850 levels should be of resistance though, with $749.23 acting as a subsided hurdle. We really need to see a bit of stability to continue to find buyers, as the market continues to be very noisy.
I think that longer-term traders might be interested in buying slowly, and holding onto positions, but that’s more of an investment than anything else. You need to be patient to ride out this moves though, so keep that in mind.
An independent financial consultancy company, deVere Group, which provides investment and wealth management services has predicted that Ethereum could see a significant rise by the end of this year, reaching $2,500.
They predicted its fourfold increase based on thanking the growing adoption of the digital currency as well as the use of smart contracts.
I wouldn't forget to also state that It is also interesting how Ethereum lost 1.42% over Bitcoin, which is pretty startling at this stage. Lets now see what the chart is saying...
From the Chart above, it looks like ETH broke a very major Support Line on the hourly chart and we are not very sure how low it would get.
At the very moment, I am watching for the $600 levels and maybe averaging down at $580 if we get there. Like I said earlier, I think we are still up to having more buyers so no panic at all.
If the bulls succeed in breaking out of the resistance, the pair should quickly rally to $904. If I get an opportunity, I might suggest a long position above $736.84
Not surprisingly enough, ETH could also easily and simply test my $586 support and to me, yet just another opportunity to buy in.
However, we could look at the indicators and see which way has more chances than the other
The Daily Stoch RSI is currently at 33 but I anticipate it to go lower to 18, and so will the price.
On the DMI, It is evident that the buyers are the rulers here and as long as the ADX stays above 25 I am BULLISH (currently at 41.1).
The RSI is at 58 but will go lower as it has dropped from its 73 overbought regions to attract massive buy ins.
The 2 lines on the MACD are coming closer and closer to each other showing that the price is losing its strength. However, the MACD is an oscillator and during very strong trends, it gives inaccurate information. Thus, when you're in a strong trend, don’t get confused by too many crossings of the MACD lines.
- In addition to that, as long as the MACD line is above 0 and price is above the 12 and 26 EMAs, the trend is still going as it is on ETH. Last but not least, do not forget to do your own DD and don't solely rely on what I post...
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