Hi guys,
Several interesting things to note on the daily chart for ETH. It broke out of the descending line and has been on a trend upwards for the last 3 weeks. The momentum shows overbought, which should be a consideration to take profits. If you bought much earlier, then this would be a good time to take some profits. However, the Stock RSI is still very bullish with plenty of upside left.
In order to check that hypothesis let'g go back to the massive rally at the end of 2017, which you can see ran for over a month with the momentum indicating overbought for most of it. We are 3 weeks into this particular uptrend. Is it a given that we would keep going higher. No, it is not. However, the trend is generally your friend.
Please note that the volume is lower now than it was at the end of last year. However, that is true across the board (for the larger cryptos). It is interesting to note that the final surge occurred in the last 10 days between $950 and $1400 (40%+ upside from a similar level of Stoch RSI as now). Again, that is not to say that history will repeat itself. Just that people tend to be somewhat predictable in their behavior. It was FOMO that likely drove the price higher the last 10 days of the last rally. I think it is likely that is what should drive it higher yet again. How high? $897, $1,023, $1,203 and $1,431 are the upcoming resistances.
Of course, please do your own research.
How about the downside? There are at least three levels of support - an uptrending green line should offer support, the 20 MA and the 23.6% fib level @$616. The risk / reward seems evident. What do you think? Is the upside risk worth it?
Several interesting things to note on the daily chart for ETH. It broke out of the descending line and has been on a trend upwards for the last 3 weeks. The momentum shows overbought, which should be a consideration to take profits. If you bought much earlier, then this would be a good time to take some profits. However, the Stock RSI is still very bullish with plenty of upside left.
In order to check that hypothesis let'g go back to the massive rally at the end of 2017, which you can see ran for over a month with the momentum indicating overbought for most of it. We are 3 weeks into this particular uptrend. Is it a given that we would keep going higher. No, it is not. However, the trend is generally your friend.
Please note that the volume is lower now than it was at the end of last year. However, that is true across the board (for the larger cryptos). It is interesting to note that the final surge occurred in the last 10 days between $950 and $1400 (40%+ upside from a similar level of Stoch RSI as now). Again, that is not to say that history will repeat itself. Just that people tend to be somewhat predictable in their behavior. It was FOMO that likely drove the price higher the last 10 days of the last rally. I think it is likely that is what should drive it higher yet again. How high? $897, $1,023, $1,203 and $1,431 are the upcoming resistances.
Of course, please do your own research.
How about the downside? There are at least three levels of support - an uptrending green line should offer support, the 20 MA and the 23.6% fib level @$616. The risk / reward seems evident. What do you think? Is the upside risk worth it?
Although ETH closed above $776 (38% fib), we have not yet seen a couple of candles (8 hours on the 4-hr chart), which would give us more confidence in the continuing uptrend.
For new positions it would be good to wait and see the trend hold.