Bitcoin investors are currently staying away from entering riskier positions due to the unpredictable high volatility. Ethereum, on the other hand, is showing promising signs. The Technical analysis of ETH reveals many short term trading opportunities.
Trade setup for Ethereum ETHUSD
The day’s range for Ethereum was $147.00 — $158.96.
ETHUSD Chart Published on TradingView.com
The hourly chart shows the formation of a ‘Hammer,’ which is a Bullish reversal indicator, at the end of a downtrend. A patient investor would have waited for the next green candle to emerge and immediately enter a ‘long‘ position on Ethereum.
As per our analysis of Ethereum’s movement, the target buy would have been at $151.68, and the target sell would have been at $158.92, a profit of 4.77%. However, Ethereum moved much higher and crossed $161.65, which is a 10% jump. Therefore, investors reading our analysis would have caught this jump and greatly benefitted from this trade.
ETHUSD Chart Published on TradingView.com
As per the four-hour chart, ETHUSD broke the resistance at $158.92 quickly. There is no strong resistance between this point and the one at $171.69. Therefore, once Ethereum broke this resistance at $158.92, there is a more than likely chance, Ethereum would cross $170 mark within a few hours.
ETHUSD Chart Published on TradingView.com
The daily chart with Bollinger Band indicators shows that Ethereum has historically respected the centerline of the Bollinger Bands. Currently, it is above that centerline, which happens to be the exponential moving average. And it is likely to stay that way unless impactful negative news comes up or Ethereum enters an overbought zone.
There is an outside chance that Ethereum might retest the resistance at $171.69. In case, ETH breaks this resistance successfully, the upside could be very high for ETHUSD investors.
