The latest developments in the Crude oil universe has taken the financial markets by a storm. Crude rebounded from its lowest ever prices. ETHUSD reversed from its bearish outlook and gained over 7% since the open.
The day’s range for ETHUSD is $170.33 — $183.26. The technical indicators have suddenly turned bullish on Ethereum.
Let’s take a look at the technical indicators for ETHUSD
ETHUSD Chart Published on TradingView.com
The best way to analyze the short term trend in Ethereum is by taking a look at the hourly timeframe for ETHUSD.
- Ethereum was earlier oscillating in the range of $168.98 to $174.12. The support and the resistance were retested a couple of times, but ETH didn’t break out.
- As of writing this article, Ethereum is just above $182. Now the upside could be till $193 for ETH. However, that would need the bulls to charge severely and take over the bears.
- Although most of the cryptocurrencies gained significantly today, it is essential to understand that it is not a genuine bull phase. The current upside is to be taken with a pinch of salt.
Short term trade setups for ETHUSD
- The Relative Strength Index is heading towards the upper band of 80 on a 20,80 RSI scale. That is the overbought zone. Once, ETH reaches the overbought territory, a heavy selling will follow.
- The heavy selling will be as a result of the aim of booking profits. Now the catch is to wait for a bit and analyze the direction of movement. There is a chance that even after entering the overbought zone, prices continue to rise. In that case, it would be prudent to sit back.
- In case ETHUSD starts falling, the entry point should be somewhere around $185 with a target of $173.
The rest of the week is going to bring a lot more clarity about the fight against COVID-19.
