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On a weekly timeframe, the rate of the native coin of the Ethereum blockchain (ETH) is bullish despite falling amid the December 4 market crash. Price formed a long lower wick (green icon) on the chart, which brought it back above the $ 4,000 horizontal area.
This is the key support that previously played the role of resistance formed by the all-time high.
As long as ETH remains above it, the picture will remain bullish. The nearest resistance is marked in the area of $ 6,026 (Fibo level 1.61 of the external correction).
The RSI and MACD-Histogram give bearish divergence signals (red lines). These are signs of weakness that often precede bearish trend reversals.
However, there is no bearish divergence on both the MACD signal line and the last two RSI highs (green lines).
Thus, the weekly chart is showing conflicting signs.
Short term dynamics
On the daily timeframe, ETH bounced off the upward support line (green icon) on December 4. As a result of the rebound, a very long bottom wick appeared on the chart, which is considered a sign of buying pressure.
However, just like on the weekly timeframe, technical indicators give mixed signals.
Thus, MACD is declining, but still remains in the green zone. This means that the short-term MA is gradually slowing down relative to the long-term MA, but is still faster. In addition, hidden bullish divergence signals appeared on the chart, which is an indication of the continuation of the trend.
Meanwhile, the RSI, which is a momentum indicator, is directly around the 50 mark. This indicates a neutral trend, as the 50 line serves as the border between the bullish and bearish trends.
Thus, technical indicators provide conflicting signals, but still lean a little towards bullish. Meanwhile, ETH’s price action is unambiguously bullish.
ETH / BTC
Cryptocurrency trader @Thebull_crypto recently shared an ETH / BTC chart with his readers, predicting a bullish breakout in the short term.
$ETH breaking out 🧐#Ethereum pic.twitter.com/HsxepUIift
— bull sayler (@thebull_crypto) November 30, 2021
After this tweet was posted, the market did indeed make a bullish breakout from the triangle and peaked at ₿0.087, refreshing this year’s high.
The symmetrical triangle on the chart suggests that ETH has completed wave 4 of a five-wave bullish structure.
The most likely target and top of the current growth is the area of 0.097. These are Fibo levels of 1.61 external retracement of wave 4 (black) and 0.618 of wavelengths 1-3 (white).
#Ethereum #remains #bullish