It's always nice seeing positive and "green" days, especially when it's about the asset your holding. But don't let your emotions fool you.
Eth breaks out the previous resistance (the gray area), suggesting a further upward movement. However, if you notice, we are in proximity to the long descending trend line, in which the price heavily bounced back already 2 times. If we take into account the time, the previous rally lasted approximately 80 days followed by a sharp decline. Past data is not always a reliable tool to predict the future, but it's useful.
Therefore, from a technical analysis POV considering the time as well, the price might retrace because the rally has been up for 80 days and it is in close proximity to the descending major trend line. If you are a long-term trader, I would suggest that you hold. But if you are a short-term trader, I would suggest you sell and find a better buy opportunity, which in this case it could be around 240euro.
If you enjoyed my analysis, make sure to hit the like button :)
I would welcome any thoughts/comments. We learn from others!
Your analysis is interesting. However, I think that your top trend line is not rightly placed. Indeed, your second top is, in my opinion, a noise and instead you may consider the intermediate one peak as your second top. If you take it into consideration, it will explain the up trend which started on November 17th. Confirmed by the break of the triangle and MACD as well.
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@TristanVI, I see your point, but I disagree. The second top cannot be considered just "noise". It's too significant for it to be relegated to a one-off high.
Taking both tops into consideration, you would still be able to explain an inevitable uptrend.
Regardless, a lot of key factors can be taken into consideration to "predict" the next few weeks of ETH value. At this stage, anything could happen. Bitcoin is adding ATH's almost every day, but i feel it is poised to pullback considerably or correct very low, which would put short buyers in an advantageous position to jump in on a low. How does this affect ETH?
We read a lot about direct or indirect correlation between ethereum and bitcoin, so all in all I'd be cautious.
Two outcomes could be on the horizon:
A. Bitcoin corrects lower before attempting a new surge, and everyone will sell for profits and invest in ETH and or BCH, until a new uptrend bump in BTC occurs. ETH will surge higher past the resistance points.
B. There is no indirect correlation between BTC and ETH and both may keep on growing in the short term. A considerable drop in BTC could drag ETH down to the support levels we've seen early November.
We still don't have strong confirmations for either outcome.
@TristanVI, I didn't doubt your assertion that there could be an uptrend.. I doubted your assertion that the top trend line was not rightly placed. Back when I wrote the above, the community was relatively divided on the upcoming outcome. I didn't disagree nor did I agree.. I just opted for caution. But sure, if you feel better by writing that i was wrong, then so be it. Your happiness is my happiness.