ETH/USDT: Extremely Bullish with One Major Problem 4H (Aug.02)

2 באוג׳ 2020

X Force Global Analysis:


If you find our analyses to be helpful, make sure to support us by dropping a ‘like’


In this analysis, we explore Ethereum's 4 hour chart to assess the bullish and bearish evidence for the next probable move.

Analysis

- To begin with, Ethereum has been on a very steep uptrend, trading within an ascending parallel channel for days
- The Simple Moving Averages (SMA) are all aligned in order: 20, 50, 100, and 200 SMA on the 4H
- Prices are trading way above the Moving Averages as signs of strong support for the bullish trend
- The Ichomku cloud is also located below current prices, indicating a clear bullish rally and strong support
- While the Relative Strength Index (RSI) is at overbought zones, we can see that we have previously seen Ethereum being at an overbought state, yet having continued to rally
- Similarly, the Moving Average Convergence Divergence (MACD) shows strong bullish histograms as a sign of momentum
- The fact that prices have broken out of the ascending parallel channel indicates strong bullishness
- However, what is concerning is the fact that such steep trends are unsustainable

What We Believe

While the trend and technical evidence suggest that Ethereum is clearly very bullish, its currently steep trend is extremely unsustainable. Thus, should a correction play out, we could expect strong support around 350 USDT where the 20 SMA and channel support converge.

Let us know what you think in the comment section below


Trade Safe.