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Ethereum (ETH) Primed to Break Higher as Resistance Comes Under Renewed Pressure


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ETHEREUM (ETH/USD) PRICES, CHARTS, AND ANALYSIS:

  • Ethereum – 3rd time lucky at resistance?
  • Bull flag formation sets the tone.

Deposit Contract of Ethereum 2.0 Reaches $28 Billion Worth of ETH | Finance  Magnates

 

Ethereum is threatening to break through multi-week resistance as the second-largest cryptocurrency turns higher. ETH has lagged Bitcoin over the last few days, pushing the ETH/BTC spread back down to a multi-week low of 600, but this underperformance is now starting to turn, leaving Ethereum close to a technical resistance level.

Bitcoin (BTC) Grinding Back to Multi-Month Highs, Volt ETF Offers Crypto Diversification

The cryptocurrency market as a whole is also growing and is not too far off its record high printed in mid-May this year. The recent move has been lead by Bitcoin but a raft of other coins are now moving higher, with strong, single-digit percentage gains seen today.

CRYPTOCURRENCY MARKET TOTAL CAPITALIZATION – OCTOBER 14, 2021

Ethereum (ETH) Primed to Break Higher as Resistance Comes Under Renewed Pressure

Chart via TradingView.com

While Ethereum may still lag Bitcoin over the last seven days, the latest move higher sees multi-week resistance now under threat. Horizontal resistance at $3,675 has held the last two attempts but it looks increasingly likely that it will third time lucky for the bulls. The bullish scenario is helped by the recent upturn in all three simple moving averages, with the 20-day sma just about to finish off a bullish set-up, while Ethereum’s price action over the last two weeks has set up a bullish flag pattern, another driver of higher prices. A break and open above $3,675 will set-up $4,028 as the next target, with little resistance seen between these two levels, before $4,379 comes into play.

How to Trade Bullish Flag Patterns

Ethereum (ETH/USD) Daily Price Chart - October 14, 2021

Ethereum (ETH) Primed to Break Higher as Resistance Comes Under Renewed Pressure

What is your view on Ethereum (ETH) – bullish or bearish?

 

By Nick Cawley, Strategist, 14th October 2021. DailyFX

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    • @tonybyrne, Unfortunately, we do not have that type of facility. Thanks, KoketsoIG
    • No I simply mean a borrowing facility, a loan, secured against my shares portfolio on IG 
    • Natural Gas Elliott Wave Analysis - prices approach key resistance zone Function - Trend Mode - Impulsive Structure - Impulse Wave Position - Black wave 4 of red wave (3) Direction - Black wave 5 of  red wave (3) Natural Gas (NG) prices are approaching a significant resistance zone that could attract sellers in the coming days and weeks. Over the past two weeks, the commodity has been moving upward to correct the long-term bearish trend that began in August 2022 when it was trading at only $10. Unless there is a violation, this bearish trend should continue. The key question is where this correction will ultimately end - most likely at important price confluence zones shown on the charts. Looking at the daily chart, the bearish trend is clear. The 4th wave (in blue) of the bearish impulse wave trend ended at 3.666. The 5th wave has already begun and is currently unfolding. Detailed analysis reveals that blue wave 5 is completing the red sub-wave (3). As expected, the red wave (3) is further dividing into an impulse wave, which is currently completing its 4th sub-wave represented by the black wave 4. Once wave 4 comes to an end, we can expect another downward movement for wave 5 of (3). Based on the daily chart, it appears that the decline in NG since 2022 is in its final stage and could reach its lowest point in the coming months. Meanwhile, by examining the H4 chart, we can understand how and where we can potentially participate in the next sell-off for wave 5 of (3). On the H4 chart, wave 4 subdivides into a 3-wave correction, specifically the blue wave (a)-(b)-(c). Interestingly, we have identified a confluence zone at 1.94-2, where a psychological level, a Fibonacci level, and a resistance level coincide, indicating the potential end of wave 4. The validity of the bearish impulse wave (3) will be in jeopardy if the price surpasses 2.32. To summarize, according to the Elliott wave theory, the current bounce in NG is considered a corrective move within a bearish impulse wave. As the price approaches a crucial resistance zone, traders and investors can anticipate the sellers taking control once again and pushing the commodity towards 1.2. Technical Analyst : Sanmi Adeagbo        
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